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

Been transcriptionist 20 years but new at IC work, need advice - cass45

Posted: Sep 03, 2014

Hello Everyone:

I have been a Medical transcriptionist for approximately 20 years, but I am brand new at any contract work and need some sound advice. I have always worked for a doctor's office or hospital, so they have always supplied me with equipment, programs, etc. I have decided to go this route as I need a more flexible schedule, but I have never worked where I have been paid by the line, so pretty clueless about it, even in the sense of what is good pay. I have applied to one company so far that seems to have a good reputation by information I have found here. I just need to find someone who can give me some guidance and answer any questions I need answered along the way on this new transition. I would appreciate anyone's feedback on anything you would like to share and if you could support me in my new venture.

Thanks! Cass

transitions - SM

[ In Reply To ..]
You really need to be more specific about what it is you need/want to know.

You also need to realize there are two types of ICs.

1. You go out and pound the pavement and find your own clients. You do the work totally at your own schedule and the buck begins and stops with you. Pay rates are set by you but you have to be competitive if you want to get work (so you'd be around 9-12 cpl) (a line standard for the industry is 65 characters including spaces but you can make it whatever you want as long as you clearly spell that out for your client.) You'd have to provide them a way of dictating and a way of receiving the finished product. Most have moved to a digital product. If there is a little work, you deal with it. If the clients all dump work at the same time on the same day, it's still on you to meet your contract terms.

2. IC where there is a middle man (MTSO). Despite what many claim, you *CAN* be an IC and have a service say, "I need you to cover 9-5 M-F" That is NOT against the IRS rules. However, be very mindful of whether the MTSO is misclassifying you in other ways-- requiring you to attend trainings, to perform unpaid work, etc. Probably 85% of the services hiring ICs could be taken to court because they are actually treating employees as contractors.

Tips:
1. You will need to know what should be in a contract no matter which method of IC you become. TECHNICALLY speaking, if a service (MTSO) is hiring you as an IC, you should be the one issuing the contract. Most, however, will issue theirs. Feel free to cross out, correct, add to this accordingly.
2. Pay rates. Most MTSOs are going to tell you what rate they will pay. You have the option of accepting or refusing, countering even, but most will have the attitude of take it or leave it. Right now, for straight typing, rates with services are running 5 cpl- 8.5 cpl. I do have some friends working for small services making 9-10 but those jobs are rare. Average is 7-7.5 for straight typing. Editing - an entirely different skill set - rates are going from 3 - 5 (I've seen lower and a bit higher) but average is 3.5-4 cpl. Unless you get great dictators, a great platform, and a speech engine that actually is doing its job, it would be hard to make a living this way.

Taxes- As an IC you are responsible for paying a "self employment" tax. This is the IC version of paying Social Security and Medicare - I think around 15.7%. As an employee, your employer pays 50% of that. As an IC, you also get an off-set of 50% but it's still a chunk of change to fork out if you've not planned for it. You are also responsible for submitting your federal, state, and local taxes. Honestly, unless you're making more than $30k (and that's difficult for many MTs anymore), you could handle those taxes at tax time and now sweat doing quarterly payments. You also get deductions you can take at tax time that lowers your tax burden by reducing your income totals.

The main thing to remember, IMO, is if you are an IC you are a BUSINESS OWNER. Think like that and not like an employee and you can make much more sense of the classification.

Good luck!

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