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

Independent Contracting - JJ

Posted: Apr 16, 2014

can anyone give me some info independent contracting. what all is involved, what taxes need to be paid, do I pay double social security, do I need a buisness license, etc. any helpful information would be appreciated.

Thanks

Independent contracting - Depressed

[ In Reply To ..]
A CPA told me "they would have to pay you twice what you're making for you to actually make any more money." He said not only would you have to pay double social security but also unemployment taxes, etc. He said you would need a "business tax ID" and that you would have to file quarterly taxes.

Don't listen to nay-sayers - sm

[ In Reply To ..]
You don't have to pay double anything. Instead of an average of 25% that you would pay if you were an employee, you have to pay 33%. That's not double. You don't need a business license. You might need to get a separate checking account that's used only for your small business. It depends on the company with whom you contract. Some of my companies have requested a separate checking account for their deposits, while others have not. Your best bet is to look on the IRS website for small business information.

thanks for the replies - JJ

[ In Reply To ..]
thanks for the replies. I am really nervous about doing IC. I'm not real sure how to do the taxes, how much to take out, when to pay, like quarterly or yearly. If anyone has ever done IC, did you like it, do you still do IC?

JJ -- just some questions and things to think about - nn

[ In Reply To ..]
Are you actually getting your own accounts or are you going to be subcontracting for a service? The reason that I am asking this is because there are some companies that if you are a subcontractor for them, DO require you to have a business license depending on where you live. You are responsible for your own taxes and such, and whether you pay them yearly or quarterly depends on when you want to pay them. Most MTs pay them quarterly so it's not such a big chunk come tax time.

Realize too, that even as an IC (unless you have your own accounts) that generally you will be "contracting" with someone who in all likelihood will state they will only pay you 7-8 cents a line for straight typing and 3-4 cents a line for editing. You cannot generally "negotiate a price" and tell someone (again, unless you have your own accounts)that you charge for example, 10 cents a line -- you won't get anyone to hire your services that way, because in essence, they will feel that you are charging too much, which unfortunately nowadays is true.

Also, as an IC, if you are contracting with an MTSO, you need to be aware of the fact that they are also going to expect coverage during the weekend. You will have to provide them with a "schedule" or your "availability." If you limit your hours to 8-5 M-F, and you are contracting with an MTSO, you are likely not to get a contract with that MTSO, because coverage depending on whether it is acute care or clinic is generally 24/7, 365 days a year, holidays included.

As an IC, if you are unavailable whether it be due to illness, vacation or whatever, you are still expected to inform the contracting MTSO of the fact that you would not be available and for what reason. It's like when you expect your plumber to show up and he doesn't show all day and doesn't bother to call you to let you know the reason why, you'd get upset.

If you are lucky enough to have landed your own accounts take into consideration what it is going to cost you expense wise -- printing, faxing, possibly hiring other employees etc. You have to make enough money to make a profit, but you also have to stay competitive.

The advantage to being an IC from my viewpoint, is there is a tad more "wiggle room." In the sense that if you contract for an MTSO and an unexpected emergency comes up or you have a doctor's appointment, I have generally let people know that something has come up and that I will be starting later or unavailable. In essence, you are pretty much left alone, but you are expected to be able to hit the ground running.

I like IC better. - xxxx

[ In Reply To ..]
You get paid more cpl generally speaking and have more flexible hours. Yes, you are responsible for your own taxes so why not just open a separate account and put away the amount the MTSO would have taken out per pay period and earn some interest on it? You can use your office space a tax deduction and also anything that you spend for your work can also be a deduction. I applied for medical insurance through ACA and was able to get a subsidy so my insurance for my husband and myself was LESS than if I had gotten it from the MTSO for just myself. So, I'm quite happy with being and IC.

Similar Messages:

Oct 26, 2009

I am finally leaving the broken world of transcription vending to become an independent contractor once again. I am so very fortunate enough to have benefits through my husband's employer, so it's the pay I am really missing. Is it unreasonable to put a raise in the contract? The hospital basically told me they are not contracting for as much $ as they used to (yet another slap in the face of my career), and kind of hinted that raises are a joke. When I follow ...

Jan 12, 2012

Hello all, I have a potential new job, FINALLY!! I am relatively new out of school and have only had one, short-term position in transcription. I worked at the facility and was paid hourly. Now, this doctor that I'm in talks with for this position is wanting to know fees and contract stuff. I have NO IDEA how to set that up or what to even charge. Can anyone help with this, or at the very least, point me in the direction of where to find information that could help me create something? Sho ...

Jan 04, 2013

I have a zillion questions; however, I am on unemployment, which I would probably get an extension and a grant to go to school only I am not really interested in coding/billing because well I am just not that keen on the healthcare field anymore. Not to start anything, but unem really only wants to give grants for a 3- to 6-month certificate mill, in which more than likely I would not get a job coding anyway. All it would do is buy me some more time to wait for something else, which ...

Jun 11, 2010

Hello Colleagues - Does anyone know anything about VA Centers and how to sub contract or a contact? Thanks! ...

Apr 09, 2015

Is there anyone currently contracting with AccuPro who cares to share? ...

Feb 11, 2012

Good morning I've been an MT for just over two years now and have always been an IC working for a transcription company until recently when a local doctor hired me as an employee to do his transcription. I work from home, certain established hours, and he pays me hourly and takes out taxes etc. Now I've been contacted by another local doctor to do his transcription, but he wants me to be an IC and pay me by the line - I will have to keep my own line count and send an ...

Oct 22, 2014

I am so tired of these companies hiring for an IC position and then when you are not at your keyboard johnny on the spot at 11 a.m. every day to start your day and sometimes start at 12 p.m. or 12:30 p.m., they are calling your cell, sending threatening E-mails. They never stipulated in their contract that if you say, per se, you are going to work 11 a.m. to 7 p.m. and you start a little later, say 12 p.m. and work until the work is completed still getting getting the work completed well w ...

Jun 22, 2015

7 cpl, no spaces, pay once a month... give me a freaking break! PLUS having to buy their software at $200, (but refundable should you ever quit) taken out of your check in "4 easy payments." Yeah... sign me up!! ...

Nov 11, 2009

Hi Everyone, I'm a transcriptionist with 20+ years of experience. Way back 20 years ago I had my own service and, for various reasons, closed it and went to work for someone else. Now I'm tired of paying the middle man all of my hard earned wages and would like to get back into the truly self-employed aspect of transcription. Back then we just transcribed from tapes. The problem is that technology has changed to so much during that time, I hardly know where to start ...

Mar 10, 2010

Would a few independent contractors mind sharing your CPL rate? I currently work as an employee and have three years experience. I am looking into IC jobs, but I am having difficulty finding information easily on the difference in rates between IC jobs and employee jobs. Thank you! ...

Jul 11, 2010

How does anyone become an IC (independent contractor)? What is the process exactly? Any help would be appreciated. ...

Aug 19, 2011

I recently got a reply on a job as an IC for a company but in order to work for them I have to have an EIN. How do I get one and how do I figure out my taxes and all the stuff that goes with it? ...

Jun 13, 2013

I was thinking of applying for an IC job until I saw this (and much more, but this did it for me). If you have been offered an independent contractor position it is very important that you calculate the ultimate cost to you as a taxpayer to see if the salary being offered is worth the time and effort. For example, if you are being offered $15 an hour as an independent contractor and $12 an hour as a payroll employee, you may initially be tempted by the fact that your "take home" pay will be ...

Aug 21, 2013

I have been thinking about getting my own contracts instead of working for a big company. Can anyone please advise me on how to go about this? I have been working for five years as an MT and I was just content with what I had but I won't be getting a raise anytime soon (haven't for the past 5 years) and I know that I would be making more independently. So what are the steps of getting your own contracts? What do I need to know before I begin? Thank you all ...

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!!! ...

Nov 17, 2009

In order to comply with the standards and criteria the Federal Government has set forth to determine who qualifies for IC status, MD-IT has designed a couple of very basic questions to see if an individual is eligible to be classified this way. 1. Is your business incorporated, a LLC, S-Corp, or Partnership, with a separate FEIN, or are you a sole proprietorship with a registered DBA (fictitious name)? If yes - can you provide evidence of such? (copy of registration ...

May 05, 2010

A company is looking for ICs and says you must fill out pre-qualifying form. In it they ask for specific time of each day you can work. As I understand independent contracting, you get job, are given TAT and determine when you will do it. Can a company ask for set hours and still be calling their people independent contractors? Thanks for any answers. ...

May 21, 2010

I would like to know what all is involved with being an independent contractor. I have been toying with the idea a lot lately but have no clue what needs to be done or what is required of me. If anyone could give me some insight into this, I would so truly appreciate it. Thanks... PS: I have been an MT for over 20 years so not new to the scene but always figured employee status was better. ...

Aug 10, 2010

Yes, I fell for DIT's reassurances that their financial troubles were all in the past too. I worked diligently for two months only to be met with silence when I asked which days they mail paychecks out. It's been two weeks now, and I haven't heard a thing. To those of you who are staying loyal to these people: Please, please, please don't. They don't deserve it. For over a year, they have been preying on new MTs who are desperate for a job. This is NOT ...

Aug 12, 2010

I was just wondering how does a person become an independent contractor? I see a lot of job openings for them but not really sure what is involved. Could someone explain how to go about getting into being and independent contractor? Thank you so much! ...

Sep 24, 2010

Is anyone a licensed independent contractor? I saw a job listing that you have to be licensed. First time I ever heard of that. ...

Dec 13, 2010

Is it illegal not to pay independent contractors twice a month. It was agreed to in the hiring process? ...

Jul 14, 2011

Hello. I just got a new job, and for the first time, I will be an independent contractor. I am unfamiliar with this. I know they will not take taxes out. I was wondering if anyone could give me some tips on how I do this. Should I consult a tax person? Is there a way I can figure out what to hold out on my own? Can I pay the IRS quarterly those figures so I don't have to pay it all at the end of the year? Do I need any kind of license? This is a part-time position at home, ...

Oct 11, 2011

I am looking for some clarification on the definition, as per the IRS website, of an "independent contractor." With the majority of companies now hiring MTs as IC's, does this definition apply ? "You are not an independent contractor if you perform services that can be controlled by an employer (what will be done and how it will be done). This applies even if you are given freedom of action. What matters is that the employer has the legal right to control the details of how the servi ...

Jun 06, 2012

When Nuance bought Webmedx they said they intended to keep the Independent Contractors. They have now "laid off" the last of one, with no notice. They were able to get around the 2-weeks notice by laying them off instead of officially terminating them. They talk about re-instating them "soon," but since Nuance has no other independents that the one they inherited with Webmedx, I certainly have my doubts about any reinstatement. ...

Aug 31, 2012

BEWARE AND BE SURE you are truly an Independent contractor. This info is available on the IRS.GOV website (type Independent contractor in the SEARCH box and then click on IC defined). I was going to work for a company who later informed me that i would be REQUIRED to look up patient information that was not dictated by going to a different website and searching thru the paperwork looking for the information. I know from experience that doing this seriously cuts into My Line Count and MY PAY. I w ...

Feb 18, 2013

This is my first year filing taxes as an IC. It seems over my head, but maybe just because this is my first time. I really would like to avoid the 250+ my local tax person wants to charge and apply that amount to the taxes I will be owing. So is it that difficult or should I just let the pros do it? Thanks ahead for any advice ...

Jun 08, 2013

When you are considered an independent contractor, is it necessary to give at least two weeks notice before you quit? ...

Oct 01, 2013

I have been working at home as an employee for a MT company for over 6 years and I'm now thinking about becoming an independent contractor. What is my first step to do this and also any advice after I figure out how to become one? Thanks :) ...

Sep 13, 2014

To the independent contractors out there...How much do you usually average per hour when being paid per lines? I just recently took a job a new company, what they offered in cpl seemed to be decent, but once I got working the software they use is extremely hard to get a good line count. It seems I just keep typing (and/or edit for the SR) away, but the lines take forever to add up. I think we are paid 72 characters for line, no spaces, no headers/footers, and you ...