A community of 30,000 US Transcriptionist serving Medical Transcription Industry


Business Owners-1099 or W2 employees? - LSW


Posted: Apr 08, 2010

If you own your own business, do you 1099 your transcriptionists or do you W2 them? Starting a business up and not sure which way to go?

 

 

Depends on a lot of factors - IC versus employee

[ In Reply To ..]
W2 means they are an employee. Which means you have payroll plus payroll taxes and possibly workers' comp. I'm not sure about that part. You can require your employees to work a schedule, though, and you have a little bit more control over how and when they show up and production.

1099 means Independent Contractor. You pay them a flat rate and don't have to worry about anything other than that. You also cannot require a schedule from them other than, say, asking them to commit to a certain number of lines per day. Those lines may be done in the morning, they may get done in the evening, they may not get done at all. You don't have nearly as much control with a contractor as you do with an employee.


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