You can find the latest information on this in IRS publication 15A. A comprehensive review of all factors considered by the IRS to determine whether a physician, RNAC or AA is a “collaborator” of an anesthesia group practice or an “independent contractor” goes beyond the scope of this article. However, there are a number of factors that, if present in a given relationship, would indicate that the person was a “collaborator” of the group, regardless of how the group characterized it. If a person is simply referred to as an “independent contractor,” there is no guarantee that a court or internal revenue service will not occupy the position that the person is an “employee” who should be allowed to participate in a plan sponsored by group practice or by the owners of the group practice. If a court or internal revenue service were to find that a person classified as an “independent contractor” was in fact a “worker” and, on the other hand, if the person completed the review of participation in a qualified retirement plan sponsored by the group because of his or her age, time of service and periods of service, the non-inclusion of the person as a participant in the plan`s disqualification plan and the right of the individual benefits could be invoked. Once you have checked your current or proposed contract, you do some market research to see where you are compared to your colleagues. This includes understanding the average rate of carry and the pricing plan for other anesthesia professionals near you. Make sure your pricing plan is at least in line with local averages. It is even better to negotiate to ensure the industry average. Using this data gives you a repository to compare your metrics and requirements for effective negotiations. From a tax perspective, the risk of misreprescating individuals as independent contractors is that the group may be responsible for the payroll tax (mainly social security, Medicare and federal unemployment) that employers are required to pay and withholding obligations. In a typical anesthesia group, it would be extremely difficult to successfully say that full-time permanent workers are far from being employees. The same is true where the physician or other professional has a service contract that states that he or she is an “independent contractor” or even if the medical practice had been entrusted to a legal entity such as a limited liability company or company for the person`s benefits.
Exercise groups that treat some or all of their employees as independent contractors, usually do so for one or more of the following reasons: To block a favorable independent anesthesia contract, you must come to the table. Here`s what you should do in advance: One of the reasons that are sometimes cited for designating staff as “independent contractors” is that “we don`t need to include them in our retirement plan.” Sometimes this happens in a situation where some selected employees are treated as “collaborators” who participate in the plan, while others are treated as independent contractors who do not. In other situations, everyone is treated as an independent independent contractor, free to establish his own private pension plans, often by 100% legal entities. While anesthesia groups generally regard their doctors and non-medical staff as “collaborators,” some groups treat some or all of their professional employees as “independent contractors.” What is sometimes forgotten is that it is not just a matter of choice.