Need advice on agencies trying to stop me from being IC

[tink135]

Can someone explain how I go about doing IC work through an agency?

They seem to want you to be an employee with them and not an IC (of course) . I now have 2 places that have contracts through the agency that only want me to work for them and they will go to a different agency if I cant fill the hours.

Well that is fine but I keep thinking of how much the agency is making off of me, SO now I have told them I will do the hours for a certain price. They act like it is terrible for me to ask for this, I feel them taking a cut and still getting the hours filled is giving us both money. If I dont do the hours a different agency gets the hours.

How do I do an IC through them? the real problem comes in because I have worked at these facilities trough an agency, I cant do IC work throught them unless the facilty is willing to 'buy me'.

I have a wierd relationship with this one agency and they are always asking me to get them more contracts,

which of course they only pay me a little bonus and a salary increase. I have went up a whole $6 an hour._ --------And now they are trying to get out of paying me that at times by saying" We dont get much for that contract, Come on help us out!"

I guess I feel if I can get them contracts, I can go on my own as an IC. I'm just not sure how to approach it through an agency.

What do I need besides my own insurance?

I have 2 places willing to use me, they want me to fill out an application with them though and then use me a prn staffing, well, if I'm IC do I still need to fill out an application for them or do I use a contract approach like agancies do , they are unfamiliar with IC and dont know for sure how to do it?

Thanks for this type of site, I have read most posts and have already learned alot!

[WyomingRN]

As to azverte's post (#5), I have yet to find any state statute that would stop nurse from setting them self up as a business entity. Such would be a violation of the Constitutional right to contract (the right to contract shall not be abridged). I have corresponded with IC down in Florida that ran into not problem at all.

Tink135 needs to understand what subcontracting means. If I contract the facility, I am the contractor. If I contract to the facility and then contract with another company name tink135 to actually go in and do the work, the tink135 company would be a subcontractor. It would help if you would look at the construction trades contract and subcontract to accomplish jobs. In reality, every nurse working for an agency is already an IC; they just haven't gone thur the paperwork to complete the process to become a full business entity.

Just as in the construction field, anyone claiming to be an IC will be looked at by the government. My husband is a contractor in the construction field. To prove he is a true contractor, he routinely has to produce two documents. One is a certificate of insurance. This is a document sent from your insurance company directly to the facility proving that you do in fact have proper insurance. (Some companies will actually take a copy of your insurance documents - it saves time.) We set it up so that the insurance company automatically sends these out to business that we routinely do business. The second is a city license proving that your are recognized as a true business entity. To get the city license, you are generally required to provide proof of business insurance. These are the only two documents the company/facility needs to prove to the IRS or anyone else that you are in fact a legitimate company. With them, the IRS cannot go back on the facility/company. Without them, the IRS can. This is what we have to routinely do with our construction business. It is a matter of routine and common since

[Agnus]

If you IC you MUST have a business license (whether you incorporate or not is an entirely other issue).

You can contract directly with facilities. You can at the sametime contract with other agencies as a sub contractor.

As a subcontractor you would pick up work that the other agency has but either can't or doesn't want to do themselves. This is work they are obligated to do under thier contract with a facility.

You can be an agency of one. Going into business on a shoe string is a misnomer. No matter what the business if you do not captialize it well you will not make it.

Most agencies do not fund thier own payroll. Pay roll for agency is done though a loan process unique to this type of situation. Ther is a specific term for this but I can't think of it at the moment.

Basically you find a company that buys paper and other negotiables and they give you a certain percentage of your payroll money say 80%, so you can pay employees on time. Then when the money comes in from your contracts (usuall 60 days ) you pay the company that financed you. When you pay them you will pay 100%. So the cost of financing your payroll this way was 20%.

These figures are an example however they are not far off from what you will actually encounter. So what we are talking about is basically a short term loan that is renewed every month.

[indie]

I think the word that escaped you was 'factoring,' Agnus.

[Agnus]

thank you. You are correct.

[NurseBenz]

I have in the past and am currently using a factoring company and have never been charged more than 8%, I am being charged 6% right now. How it works, I send my receivables, say for example $10,000. they deposit $8000. in my account within a day, they then collect my receivables 100% and then release the remaining $2400. to me them keeping $600.

[Agnus]

Originally posted by NurseBenz

I have in the past and am currently using a factoring company and have never been charged more than 8%, I am being charged 6% right now. How it works, I send my receivables, say for example $10,000. they deposit $8000. in my account within a day, they then collect my receivables 100% and then release the remaining $2400. to me them keeping $600.

Um, I must be confused as it seems to me your numbers don't ad up???

It seems like $1,000 is missing somewhere in your figures. Is it me? I don't think well in numbers.

Here is what I mean. Your receivables are 10K and they depost 8k. the difference is 2k. I understand they keep 600 that is thier interest. So since the difference is 2k after the deposit should not the remainder be 1400 that they realease to you?

I am not trying to be a nit picker pia. I am trying to see if I understand correctly or if I am confused. Thanks.

[NurseBenz]

you're right...I was trying to figure in my head just as an example. Guess it's a good thing I am a nurse and not an accountant.

Bottom line is they are only charging me 6%.

[Agnus]

Thanks, Just wanted to make sure I understood you. I am the WORST when it comes to numbers and when I think I have someting figured out I discover that I am wrong. So I have learned to double check ( with someone) numbers that I don't undersstand

[suzanne4, RN]

Some IRS rulings came out a few years ago that stated you had to be incorporated to be considered as an I.C. and not an employee. This came about after some agencies got sued by the IRS for having I.C.s due to taxing, they won the court case in Washington but the requirement came down to whether or not the person was incorporated. It is something that is very quick to do and the S corporation is just a paper that is filled out and submitted. You can have all of the paperwork done in about 15 minutes including getting an E.I.N. Too simple to pass up...........

[indrn]

In the course of reading the previous posts I have seen good information mixed in with half truths and a few down right incorrect statements. If you are serious about being an IC, I suggest that you get your information from the people who started the independent movement, the National Association of Independent Nurses, I have been an IC approx 2 years and have found it to be very rewarding both financially and in other ways, but you MUST learn to do it right!