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Can someone explain IC versus employee status? - Phancyphalanges

Posted: Mar 01, 2011

Can someone fill me in please. Despite doing this for over 15 years, I still don't understand the "independent contractor" posts. I have always been a straight employee at services. What is the difference and what are the pros and cons? Thanks for your help!

In brief... - Older than dirt

[ In Reply To ..]
If you're an employee, the employer can set your hours, your schedule, etc., and require all kinds of things from you.

If you're an independent contractor, the doctor/hospital/transcription service is your client, not your employer. They cannot legally tell you what time of day you do the work. As an IC you do have to cover ALL of your own taxes, including self-employment tax, which usually means making estimated tax payments throughout the year so you don't get penalized for underpaying your taxes when April 15 rolls around. Your place of residence might also require you to have a business license.

The upside is that you can write off all of your computer equipment, reference books, and take the home office deduction on your taxes.

Some MTSOs are infamous for taking people on as independent contractors, but then requiring all sorts of things of them that legally only apply to employees, such as a set schedule, etc.

I'm sure other people know far more about this than I do, and hopefully will chime in.

IC versus Employee - phancyphalanges

[ In Reply To ..]
Ahh,o.k. I'm getting it now. Thanks so much for your response. I feel like I have been "out of the loop" lately, just typing away. I guess I'm comfy then :) Thanks again!

While an employer cannot set your hours - sm

[ In Reply To ..]
as the above poster stated, they can limit when you work by saying they only need MTs during certain hours. They are not required to provide you work at any time you want it. Just because you want to work mornings, they don't have to give it to you, they can say they only need help on weekends or 3rd shift or evenings, etc.

IC verses employee - MT too long

[ In Reply To ..]
As an employee you get benefits such as insurance, vacation, etc and taxes withheld. As an independent contractor, you do not get anything and federal and state taxes are not deducted out of your check, you would have to pay them to the government and state by yourself.

It is hard to find employee positions.

As IC, I work when there is work, whatever hours. When I - work smarter, benefits ME, not MTSO.

[ In Reply To ..]
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