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


ICing: "Hidden" Costs - Anonymous99


Posted: Dec 30, 2009

While I'm a veteran MT and former MTSO, I just had my first experience as an IC.  No doubt some here are veteran ICs who have already learned about what I have dubbed "hidden" costs.  I am posting this in the hopes that it helps some other newbies to ICing who, like me, are looking for extra work because they need the income. 

During my initial phone interview, the manager of the company told me, "All you need is Windows XP, MS Word, Excel, an expander program (such as Shorthand 10), and a USB footpedal."  They would provide all other software.

Lessee:  High-speed internet (cable) -- check, Windows XP -- check, MS Word -- check, Excel substitute (Open Office) is free -- check.  Expander program about $27 for a year, and about $85 for the footpedal, so my initial start-up costs will be about $112.  I can handle that!

Now for the fine print:  In order to transcribe for these yahoos, one must run FIVE programs simultaneously.  Yes, they supplied them, but they never told me the amount of memory (RAM and free disk space) required to run all five programs.  (Even my lame primary employer does that!)  Several attempts at installing the software were made before it was advised that I add memory to my PC.  So, I put my 'puter in the shop (working around the schedule of my primary job) and spent $100 on additional memory.  Evidently that wasn't enough, because shortly after installation I began having shut-down (jamming) issues.  So, while the software "runs," it is suboptimal and interrupted frequently, requiring numerous reboots during the shift.  Just for the record, I have a VERY NICE Dell PC, and the memory was nothing to sneeze at before.  However, I am already running four programs for my primary employer (including Nuance voice recognition).  So an additional $100 needs to be spent to add additional memory in order to run their software properly.  (Cha-ching subtotal:  $300 [$200 for memory, $100 in lost income {lost transcribing time because of reboots}])

Next expense:  LD phone calls.  The manager and owner are in a different city, and there is a lot of back and forth, mostly via free messenger software, but as you can imagine certain sensitive info shouldn't be transmitted in that manner, and one's fingers DO tire from all the typing.  Thus far I have incurred about $50 in LD phone calls (I'm on the carrier's discount plan).  (Cha-ching subtotal:  $350)

Next expense:  TIME.  You are probably thinking, huh?  Well, as I said before, I work for YAHOOS, and they are incredibly disorganized.  They can't even keep the simplest of records.  Daily we submit report totals and other info to the managers, yet we receive e-mails asking us to "resend them to make sure they're correct.." (Mine were correct on the first go-round.)  So, this second job has now eaten into my personal, off-the-clock time because the idiots don't know what they're doing.  The foregoing is just one example; there have been other things as well.  I estimate that I have spent about two hours of my time, off the clock, complying with their requests like the above.  (Cha-ching subtotal:  $400)

The above have been incurred in just a few short weeks. 

I hope this helps those who, struggling in this economy, are seeking work as an IC.  The moral to take from the story is twofold:  (1)  Don't take what they tell you at face value (the company I work for IS dishonest [how long to count the ways!?]), but that is for another post).  (2)  You will probably need to have some cash lying around --- or access to some -- if you are going to IC.

 

 

 

Ahh, am IC and did not incur any of the expenses - you are talking about

[ In Reply To ..]
I do not have the background you have and you are a former MTSO yourself and yet you wind up with paying for these things. I have unlimited long distance first of all. I did not pay for my foot pedal, company provided. Expander program? Never had and do not use ever. I use shorthand and that I transfer from one computer to another when I buy new computer. Five programs running? Why so many? I have 1 platform, installed by company and nothing else. Why have you been so snookered if you are a seasoned MT and then former owner yourself, would seem you would know more than the average bear.

Narcissistic, much? - Anonymous99

[ In Reply To ..]
First of all, as an MTSO I never had any ICs, only employees. AND IF I had utilized ICs, I would have been UP FRONT with them and provided them with all necessary info (such as memory specs). That kind of honesty, based on countless posts on this board, is apparently in short supply these days.

Long distance conversations were not foreseen by me, as I was told that communication was done via E-MAIL and MESSENGER programs.

Good for you that you owned your own foot pedal. Dittos for Shorthand. Since those were not listed as unforeseen expenses, then what is your POINT? Do you have one?

As to why the five programs, it is because it is a SMALL COMPANY (repeating myself here) using software that is circa 1985. I was not told beforehand that five programs would be necesary. That is WHY I POSTED, to help others avoid this situation.

Your smugness and transparent attempt at oneupmanship is incredibly unbecoming. I suggest you run to a therapist ASAP to seek treatment for your narcissism.

Why so defensive? Really upset by what has - happened, I guess

[ In Reply To ..]
I do not own my foot pedal, the company sent that to me. You talked about "hidden costs" and I had none. I worked for an extremely small company before and we did not have 5 programs to run. Being 1 up is only in your eyes because I really could not understand how someone who is supposedly knowledgeable as yourself gets taken like this.
LOL - Anonymous99
[ In Reply To ..]
You should refer to a dictionary for definitions of "defensive" and "offensive."

Yes, *** right I went on the offensive. There you go again, going on and on about particulars of YOUR situation! YOUR situation is not MY situation! As though somehow you are "superior" to me because you had a company-provided footpedal and you are "superior" to me because you already had Shorthand. (But you DID purchase it at some point....)

Ever hear of picking up a second job, trying to make ends meet, because your employer has cut your pay four times in the last year? Ever been desperate to pay off some bills? Evidently not, at last not YET.

Do yourself a favor and read through countless posts on this board about MTs going broke, possibly losing their house, have no food, etc. Not that it would do any good, because narcissists like you (look it up, your pic is there!) don't feel any empathy.
Thank you for TRYING to do a nice thing... - HatesLosers
[ In Reply To ..]
but you picked the wrong place to do that...

Thank you for the post, 99, and for trying to warn others through the benefit of your experience.

I understand exactly where you're coming from in that you're not a bumbling idiot that needs 90% of the, uh, "advice" that you're supposed to feel privileged to get here (such as, "How did you allow this to happen?"...duh, like you went out and looked for it), but that you are simply trying to warn others not to take everyone at face value and be alert to these types of things.

I appreciate the time you took for our benefit, and I hope you get your situation straightened out. As you know, there are some good, if not great, companies out there that would be glad to have someone with your experience and knowledge! Chalk it up to experience and chug on, girlfriend!!
Let me call attention to why OP got those responses - Talking about
[ In Reply To ..]
The OP started off by saying she was veteran MT and former MTSO which means upfront probably should have more know-how than just your average MTer. She stated before doing IC work you should have some extra cash lying around because of "hidden costs." There was talk in the posting about having to run 5 programs. No one else that answered had to run that many programs. They talked about needing LD when you either know to have that or what about free Yahoo or emails even. Cable for doing your work. Most are well aware you have to be hooked up like that or have DSL, who accepts satellite? Not many out there. I am not owner of a business but I tell you what I do before I have anyone do any kind of business for me at my home, I ALWAYS ask up front the charges. I am never surprised by the bill at the end.

Errr... - If software is circa 1985

[ In Reply To ..]
it should take practically NO memory to run, since in 1985 we were all running under the 640k RAM limitation of MS-DOS version 2 or 3 or thereabouts, and I'm not sure WordPerfect was even up to version 5.1 at that time either....... And of course the internet as we know it wasn't even a twinkle in Algore's eye back then.

Nevertheless, you do realize you can of course write off all of those business expenses, whether you expected to incur them or not....
Taxes - Anonymous99
[ In Reply To ..]
LOL "Circa 1985" wasn't literal so shouldn't be taken as such.

Those deductions will not help until filing this year's return. Perhaps you missed the part of my post about "struggling in this economy" and "picking up extra work."

You're making a mountain out of a molehill and I agree - with the poster you replied to

[ In Reply To ..]

As ICs we do have to cover some costs. That's just the way it is. It's life...get over it is what I say. I've worked in-house and at home. I don't know why you have to have a special expander program. I've worked for many companies and they never required one.

If your computer isn't up to speed that is your responsibility to get it up to speed. These are just things we do as ICs. All equipment, etc you purchase can be written off at tax time.

I don't see what the problem is.

The poster you replied to showed no smugness or that "transparent attempt at oneupmanship". What is incredibly unbecoming is your "poor me" reply. If anyone needs a therapist you should look no further than the mirror.

You posted basically a gripe post that you are upset you have to pay for things. Well you know what. We are ICs. If we want to be ICs then that is what we do. We all just do what is necessary and move on in life. You should do the same instead of being snippy to others who don't hold the same "pity me" routine that you hold.

Nothing narcissistic or smug about her post - get a grip before you blow an artery

[ In Reply To ..]
You're the one who needs to "see someone" about that anger problem and persecution complex you've got raging.

Seriously, lady. Seek help.

Me thinks you are embarrassed. The OP was not ugly - at all. Your post, however... nm

[ In Reply To ..]
nm
The coven is in full swing today!! - HatesLosers
[ In Reply To ..]
LOL...

I have had the expenses starting out as IC - sm - mt34

[ In Reply To ..]
Over the years for this job and that, I have accumulated more than one foot pedal, a Lanier, and C-phone.

For my own requirement (not the employer's), I have ULD, high-speed internet, and two sxpander programs (by the way, Shorthand IS an expander program), etc.

It is a gamble - and it's all tax deductable.

Problem is, we do all this on the false premise that this is THE job that will get you back in the black. That the amount you need is not only available but attainable.

They all say the same - SURE! When the truth is - some systems only move 'so' fast, some doctors make tons of mistakes, and/or some over-zealous managers take the staffing to the extreme.

Shorthand is an expander program by the way - nm -

[ In Reply To ..]
@

My mistake, the first for - You are talking about

[ In Reply To ..]
the entire year so think I did okay.

You realize there is no "clock" when you are SM - educate yourself

[ In Reply To ..]
an IC. Your expenses are tax-deductible.

What is wrong here is you are applying an employee perspective to an independent contractor situation. The two are not the same at all.

Disagree about the 'clock' thing - time is money and ONLY money as IC. - time lost is money money lost. NM

[ In Reply To ..]
.

Of course time is money! - Anonymous99

[ In Reply To ..]
Absolutely! Time IS money. Otherwise why would anybody try to work more efficiently, especially in a piece-based field like this one?

Expenses - Anonymous99

[ In Reply To ..]
Taxes aren't filed into next year -- normally April but sometimes (with an extension) in August. Those deductions won't help NOW.

Au contraire. I realize that they aren't the same. I was merely pointing out that there can be UNEXPECTED/NON-DICLOSED expenses so that others would be aware.

Not all IC jobs are like that, in fact most - IC

[ In Reply To ..]
probably not. You have to investgate BEFORE you accept an IC job. I only take IC jobs I have the capability of doing without investing in equipment I do not have and cannot use anywhere. There are IC jobs out there where all you need is Microsoft Word (usually comes with computer), software to listen to voice files such as Olympus DSS player (about $100 for Pro and free for Lite), and a foot pedal (about $50 if you shop around), and I have never worked for someone requiring 5 programs. I have an older computer and have never had a problem finding IC jobs using the equipment I already have (mentioned above). I would say for about $200 in expenses you could find a company to work for as IC. You would have more options if you have a newer computer with lots of memory for companies with their own software (usually only 1 program in my experience). You can write off whatever you spend as business expenses anyway.

Thanks for the heads up - wanting PT IC

[ In Reply To ..]
Its nice to know what I could be in for, beats getting blindsided after the fact.

No other business can start up for such little money, IMO. - nm

[ In Reply To ..]
nm

IC - me

[ In Reply To ..]
JYFI: I call myself a computer idiot. I know just enough to do my job and not much more....that said...I don't think you should have had all the problems that you did with this IC company. I am an IC and my company is really lame on training...I mean, I got about an hour's worth and had to figure the rest out myself. At least they helped me install the program by remoting into my computer ! I have a 5-year-old Dell with only 40 gig and whatever memory amount was standard with the computer, which means not much, and, at first, my company was running two platforms because they were transitioning to a new platform, and memory or space has never been a problem ! I also store almost every program on my "desktop" which is also a no-no, and, still, besides maybe a little slower computer..no problems. I had a footpedal but could have bought one from them for 40$. Platforms were free. I use the autotext (Word) inside the platform for expander. I store whole reports/procedures in Autotext. I use their spellchecker (lame), Google, and my own head for spellings. We use Instant Messenger for contact and a once-in-a-blue-moon cell phone call. So my out of pocket, basically, was zero. Of course it takes time to learn any new platform/dictator but that does not count. The biggest expense, really, is the 1/2 of my SS that I have to pay out of pocket..so, I make approximately 7.6% less than an employee. To make up for that I asked for 1/2 cent more per line at the interview when being hired and got it. That justifies the 7.6% less pay. I have worked on three different platforms and none of them took any appreciable amount of memory. I am thinking something else is wrong in your situation besides computer memory and some tech is just using that as an excuse. Would you mind posting what the platform is? Maybe someone else on that platform can tell you if they have experienced any problems similar to yours.

I am sorry you have had such a bad first experience as an IC. I like the job/dictators that I have managed to acquire with this company but I would not be an employee for the world ! As an employee, I would have really set hours and have to meet at least minimum wage during those hours and would have to accept any old lousy work they decided to throw my way. I much prefer the feast/famine of IC where I have set dictators and can make 20$ per hour or zero depending on when and how much they dictate.

When you become an IC, you become your own "business" and should expect start-up costs. S - JMO

[ In Reply To ..]
You should also be prepared for "risks" that will not pan out and will cost you money. That's the name of the game like any other business. You can't just say I'm open for business because I have a computer and not expect problems and out of pocket expenses. Long unpaid hours are also part of starting any business.

You need to know how to prepare a business plan so your "company" grows. Upgrading equipment (or software) is a constant expense so you can continue to provide your "service" to a larger clientele--and never put all your eggs in one basket. The IRS will consider you an employee if you only have one client so you need to investigate the IRS "rules" of an IC.

You need to know how to calculate additional taxes because you are now self-employed, which costs more money. Additional equipment, software, telephone, etc., should be investigated up front for the obvious reasons. A CPA to guide you in what legit write-offs are available to you is invaluable and that costs more money. My point is that you need to do lots and lots and lots of research on how to open and operate a successful business.

Shifting costs to MTs has become the rule - in this industry.

[ In Reply To ..]
Some of these costs are individually "minor" and yet frequent, so they add up.

Some of these costs (like downtime while a platform is being upgraded, a database is backed up, etc. ) are much more significant, but they occur relatively infrequently and so you're expected to eat that too.

One "hidden" cost is the loss of productivity that people experience when they're moved to new accounts, when a new transcription platform is implemented, and when people only work on their "secondary" accounts infrequently.

Cost-shifting can be discovered by comparing who would pay the costs if a transcriptionist were paid on an hourly scale, versus who pays due to the fact that the transcriptionist is being paid strictly on production, and where the loss of production originates (what causes it).

There are many, many costs that the MTSO would have to bear if the MT were paid on an hourly basis in the office but get shifted to the MT simply because she works remotely and on a production basis.

The cost-shifting in this industry has been gradually loading the MT with costs to the point that there's not much left to shift onto her back. These are costs that the MT has no control over, are not done for her benefit but for that of the MTSO (like constantly shifting her to new accounts) and PROPERLY BELONG TO THE MTSO. Really, it's shameful.

Costs are worth it - for the pay and perks of being IC

[ In Reply To ..]
Of course, I am lying, narcissistic, or a suit because I am happy with my job and make good money at it.

Right, haters?

Perhaps, in some cases. In others, not. - Glad it works for you though...nm

[ In Reply To ..]
x

There are always start up costs, that is a given I think - sm - XXX

[ In Reply To ..]
I have been an IC most of the time, tried the employee thing once, did not like it. I had my initial costs, a digital voice player (bought Bytescribe $160 I think years ago...now use Express Scribe), 2 foot pedals (one for home, one for on the go--$50 on ebay), bought Shorthand, now use Smartype, also have IT. I have upgraded my MS Word, use 2000, will not go up more unless I have to though. You should have alread had the expander I would have thought, Excel too for record keeping. I write off everything so I don't lament about it. I broke even my first month of working with all the money I put in way back in 2002. I have been pretty lucky in that all but one job I have had, all used the same 9-pin foot pedal. I needed a USB once but the company I was working for lent me one so I would not have to buy it. As for memory on my computer that is a given, you need enough to have many windows open. I have a gig of ram and a 230 gig hard drive, if I have to upgrade some ram I will do so as it would be for my benefit. RAM is cheap now and you can do it yourself quite easily and save lots that way, really not necessary to take it somewhere. --So I don't consider this stuff "hidden" costs, just the cost of being an IC which you can write off and it pays for itself quickly and you will benefit from it time and time again. As for LD either use AIM or Yahoo, save yourself the LD costs since you do not have unlimited LD. Tell they straight of you cannot afford all the phone calls, and either they call you or IM. You have a few ways you can cut your costs if you want to. I much prefer IC over employee but it is whatever works best for you obviously.


Similar Messages:


Webmedx - Hidden Charges In Health Spending Account
Dec 29, 2010

Today I get the paperwork from the HSA that we had the option to join for the new insurance.  Included is a bunch of tasks they want us to hurry up and do (which we cannot do since they have not given us insurance cards and their website won't let us register without numbers off the card).  Also included is an "account fee and rate schedule".  They get to charge us $15 to set up the account and $2.95 every month thereafter.  They say this "may" be paid by our employer (y ...


Costs For An IC License ?
Jun 04, 2012

Hello again, everyone. Thank you SM for giving me some information on ScribeRight.   I am new at this type of position, and there is no guarantee they will call me or even want me, but if they do get in touch, does anyone here know how much an IC license will cost in Ohio and what the cost might be for a certificate for HIPAA ??    I searched several sites and I am not sure what I should be pricing.  Thanks everyone.  ...


Anyone Know How Much COBRA Costs?
Feb 21, 2013

Just considering my options. That's all I'm saying. I have the cheaper of the 2 health insurance plans, as well as the dental and vision plans. ...


Avoid DicTran At All Costs
Nov 03, 2009

DicTran had few reviews online so when we looked into purchasing their platform we could only rely on the deceptive sales presentation from their owner Bill. The company claimed to be able to satisfy all our needs but after we paid them communication became a major issue. Our MT's hate the platform since it forces them to use their custom software which has numerous errors. When we try to contact them for support they just might as well not exist. The worst part of the experience is we pay ...


Reducing Nonproduction Costs - - HA!
Mar 02, 2010

In the E-mail it says they are trying to eliminate nonproduction costs.  Well, I have a great idea in mind to reduce a lot of nonproduction costs, starting with some upper management and all of their worthless VP of this, VP of that.  Really, MQ, you are driving yourself into the GROUND!!!! ...


Focus Insurance Costs
May 16, 2010

Can someone explain to me what insurance plan Focus has and the cost for single and family?  How is the insurance?  Are there deductibles to meet first?  Thanks in advance. ...


No Wonder Medical Costs So Much Now Days
Sep 14, 2013

Self referred to a vascular physician last month. He saw me about 10 minutes, said he "did not have a clue" what my issue was. I have straight forward aching at night waking me from sleep pain in the legs plus very tired feelings, sometimes worse with ambulating during the day. As a lay person I could myself have a clue. Got bill the other day with my copay and his cost to my insurance was $325.00. I called office manager, explained the short time seen, also "not having a clue" thought the bill ...


MQ Has To SEVERELY Cut Employee-related Costs And
Mar 22, 2010

There are severe legal ramifications if you put in writing that you agree to this cost cutting/salary control maneuvering by MQ.  Essentially they are getting us to let them off the hook with these "ESSAYS."  Please note on the email it states:  "All entries become the property of MQ and may be used in future communications."  Also, not to be outdone by their own salary slashing FTR program, they have also taken more time/money away from us as these are to be done on OUR O ...


Medical Costs To Raise 8.5% In 2012
May 20, 2011

Wonder how much more our wages will drop as medical costs continue to skyrocket out of control. ...


To Everyone So Worried About Paying Back Costs
Mar 11, 2014

if they change your schedule to something you don't like don't work it.  WOrk what you want.  Then if they fire you you can't be forced to pay it back.   ...


Need Advice - Drug Costs/CVS 90-day Mail
Oct 31, 2014

Does anyone out there get their generic drugs via the 90-day CVS plan by mail? I'm doing a price check.  I just noticed on this week's open enrollment "executive letter" regarding 2015 insurance that participation in CVS's 90-day mail order plan will be mandatory, unless we opt out.  Currently, we're on the High Deductible plan and my husband is on 3 generic meds that we get at Walmart because they're on Walmart's $4 (or sometimes less) list.  We ge ...


Does Anyone Know How Much Health Insurance Costs With Nuance For 1 Person?
Mar 07, 2012

I know there is a 2500 deductible, just wondering about the cost for one employee to have insurance for herself per paycheck or monthly.  Thanks! ...


Nuance Benefits Costs For A Single Person?
May 12, 2013

Can anyone tell me the medical and dental insurance costs for a single person please? Thanks. ...


Any Idea What Family Insurance Costs For Webmedx?, Also Line Rates, Etc.
Jan 20, 2010

Just looking for a range here if you don't mind.   Also, are they strict with their schedules? ...