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How do I pay other independent contractors?? - Nicole

Posted: Oct 30, 2013

I am a self-employed medical transcriptionist. I work for a single practice as an independent contractor. I need to "hire" other independent contractors to help me keep up with my work load, but I have no idea how to go about doing this. Any and all information and advice from others who have done this would be greatly appreciated, thanks!!!

paying ic - ICMT

[ In Reply To ..]
You cut them a check :)

That's the easy answer.

At tax time, you would issue them a 1099 that you would also need to file with the IRS.

You want to be sure they ARE independent contractors and not employees disguised as contractors.

You might want to spend an hour with an accountant or an attorney just to educate yourself but it's not a complicated process.

You also need to check with your local laws and make sure you don't need to be officially filed as a business, etc. You do NOT need an EIN unless you are hiring EMPLOYEES.

Take into consideration what you want to pay. - ZvilleMT

[ In Reply To ..]
Unless you're certain you won't have to QA their work, you'll want to pay them just slightly less than what you'll make to compensate yourself for the time you'll spend editing.

Also, come up with a simple contract listing how much you'll pay, when you'll pay, and to make sure they know they're responsible for their own taxes - something like the contract you signed with the company you receive your work from. Have them sign this before you send them any work.

Lastly, figure out how you will transfer work, unless you're working on a format where the other person can log in directly. If they're all voice files, look into setting up an ftp site. I've done this through GoDaddy, but there are plenty of alternatives that don't cost too much per month.

Good luck to you :)

also think about pay dates and a cash reserve - MacroDiva

[ In Reply To ..]
How long do you have to wait for your compensation? If it is a long wait, you will need a cash reserve to pay your subs in a timely manner even if you don't get paid. Do not ever let yourself get into the position of making your subs wait for payment while you wait to be paid. In any case, give yourself enough lag time to process invoices, etc., so paychecks are not late, but not too long, 10 days max!

Agree. Factoring companies are one way to help with that necessary cushion. - word student

[ In Reply To ..]

I have no idea what the fees for a such a service are, though, so it may be cost-prohibitive, depending. But worth researching. (This is probably really more applicable for a small MTSO waiting for payment from docs first before paying their subcontractors than it is for a subcontractor hiring their own subcontractors, but I thought I'd just throw it out there anyway.)

An example of one here:

http://www.prnfunding.com/medical-transcription-factoring-testimonials

I'm currently IC'ing very part-time as a second, supplemental job, and they're going to pay me by PayPal, which is great by me. PayPal transfers into my bank account usually take 2-3 days at the most.

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