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

Employee Status versus Independent Contractor - puzzled

Posted: Mar 13, 2015

Can someone tell me which position is more financially rewarding? Do ICs get 401k and whatnot? Basically, can someone tell me the differences between the 2?

Thanks so much. I am an idiot with money and taxes.

Reply - wish I was hourly

[ In Reply To ..]
ICs status you are on your own. You pay your own taxes, You do not get a 401K. You get nothing. If you don't have any work coming in you don't have any money coming in. No PTO or anything. No health benefits and you can't collect unemployment.

Hourly status would be so much better. They provide everything IC status does not

To wish I was hourly an OP from last week - Checking in

[ In Reply To ..]
You can be an IC and still have a retirement account, set up an IRA and make your own contributions. From what I have seen in regard to working as an employee for an MTSO, you probably will have to pay your own health insurance and furnish your own equipment. PTO has to be earned and it doesn't sound like the policy is very generous. In regard to getting an on site transcription job with all the perks, I would say they are non-existent now. There are probably advantages to both, but an IC definitely needs to understand tax liability and labor laws much more than the employee.

I have to warn you about posts like this - Last week OP

[ In Reply To ..]
No, ICs do not get 401Ks or insurance. ICs are self-employed and hence do not get benefits.

As for taxes, I asked how I could work IC and preserve my husband's refund as much as possible, only to be accused of thinking a tax refund is "money the government owes me" and basically told I was stupid for, or incapable of saving throughout the year and relying on the government to do it for me.

If you're looking for civility, don't look here. Too much condescension and bickering instead of helping one another.

IC - Retired

[ In Reply To ..]
I have been an IC for over a year, part-time. Your best bet for a 401K is to have an employer match the money you put in each week. For who I work currently, there is a big fat "0" as to any benefits, period! I don't know how old you are; I am 66 and retired from a hospital recently where they had employer matched funds every payday and that is your best deal in the long run for retirement. At the last hospital I worked for (from home), I worked for them seven years and really did not have that much taken out every two weeks for my retirement fund but after seven years, left with a check for $20,000. Best bet for you, if you can get employed by a hospital like this, you will do good. However, the hospital I worked for (at $20 an hour) brought in a new HIMS director who said that as current MTs left by attrition or retirement, they would not be replaced and she hired an at-home service to do their transcription to whom they pay their MTs a lousy 7 cents a line.

If you really are - as you say

[ In Reply To ..]
"an idiot with money and taxes," you are very vulnerable to exploitation and financial abuse by pretty much anyone you encounter, including unscrupulous employers (not to mention mortgage brokers and car salespersons).

The basics of "money and taxes" are not difficult to master. Empower yourself and protect yourself.

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