If you're reading this article, then you likely own or administer a medical practice of some sort. That practice may have workers of many stripes. Some of those workers may be treated as employees and some may be independent contractors. For example, some home health workers may be paid as independent contractors while others are not. If you help run a hospital, you may have noticed that some hospital doctors are considered contractors yet others are employees. But do you know why they are treated that way? Well, if the IRS or the Alabama Department of Revenue audits your practice, you may need to know why quickly.

The Economics of Worker Classification -

Since 2008 many companies have cut costs wherever possible, which often involves using independent contractors whenever possible. Why? Employees are much more expensive than independent contractors. Employees cast many burdens on their employers: health care benefits, minimum wage limitations, fringe benefit costs. None of these issues arise with independent contractors.

Originally published in Birmingham Medical News - June 2015.