As a new HH RN....

  1. In part of my new hire package, I was asked if I wanted to be an employee or an Idependent Contractor. I'm not sure what to do.

    Can anyone give me some insight. I have already applied for my Ins to NSO. I would like to be able to write off my mileage, computer, etc (being an Independent Contractor).

    Thanks in advance...
  2. 11 Comments

  3. by   caliotter3
    I read a pamphlet put out by the IRS that explained the difference and I also read some info that gave the pros and cons. I think I remember thinking that it is just better to be an employee. I think they take advantage of you somehow if you are classified as an independent contractor. But I do not remember the details. Perhaps someone who is knowledgeable about this can give better info.
  4. by   caliotter3
    Put "independent contractor vs. employee" into your web browser and see all the poop that comes up. About the third or fourth entry was by the CA labor board. I didn't have to finish reading their first paragraph to see why I would rather be an employee. The employer does this to get around labor laws. No overtime, etc. Read some of these entries and I bet you will agree.
  5. by   muffin7
    The thing of it is, is that I would not really be an employee... only per diem with:

    no benefits (health ins, life ins, dental, etc.)
    no retirement

    It sounds to me that the difference for the HH agency is that they will then deduct taxes from my check. I think that is all they have to do on their part.

    My husband is self-employed and he writes off everything that our CPA says is okay. That is another reason to be self-employed and I would eventually like to get a medicare number to see patients on my own once I get HH experience.
  6. by   caliotter3
    Well, if you're going to get a medicare number then you would be an independent contractor. However, I can't see paying all of the employment taxes and my own benefits, etc. And no overtime? Not worth it to me. I don't see where you have to be an independent contractor to deduct business expenses. My husband deducted the business use of his vehicle and other expenses when he was an employee.
  7. by   muffin7
    I will probably be working maybe 20 hours for this agency once I am oriented and seeing patients.

    I am not being offered any benefits and would be keeping my own Blue Cross ins.
  8. by   caliotter3
    All the agencies I've ever worked for had a minimum number of hours per week that had to be met for someone to qualify for benefits, usually 28, 30, or 32. I carry my own insurance which is a good deal compared to the employer sponsored insurance.
  9. by   muffin7
    I know that they would not offer benefits, etc. Those are the reasons that someone usually becomes an employee.

    I'm going to read the link you sent me as soon as my household quiets down (kids) and I can concentrate.

    It appears from the paperwork that the agency wants me to fill out is for tax purposes only.
  10. by   paradiseboundRN
    If you are a contractor you will probably need to pay quarterly taxes or you'll owe too much at the end of the year. And you'll have to be diligent about putting away that tax money. I wouldn't be good at that! As far as deducting things, you would be able to deduct your home office, mileage, supplies etc. As long as the agency didn't provide supplies and didn't reimburse you for the miles. As an employee you can deduct some things too but the total has to be at least 2% or 6% (can't remember which) of your income and if your married and filing jointly, that hard to meet. One benefit I can see of being a contractor is that you can take time off when you want. I used to work contingent in home care and loved it! I accepted the patients/areas that I wanted to go and decided which days I wanted off. I would be doing that today except most agencies in my area want full time staff. Now I'm full time and get a measly 2 weeks vacation a year!
  11. by   lcc1080
    I worked as an IC for a few yrs (doing another type of job). What you may not know is that you owe like 15%?? tax each year - usu an employer pays 7.5%, and you pay (get deducted) 7.5% from your paycheck. When you're an IC, you must pay the entire 15% tax. In other words the company has it easy. Also, if you should ever become unemplyed or your hours are reduced, you are not eligible for unemployment, as you CANNOT be an inde contractor or Self employed to collect unemployment. I believe also, if you were ever injurec on the job, or just driving around during work hrs, you are not covered under workers comp, which I think could be pretty serious. I thought it was great being an IC for a few yrs, until I learned through experience some of the draw backs; also I asked my acct, who told me that it is ALWAYS better to be an employee of a company if possible. Quite truthfully, tax time was a real pain as well, having to add up mileage/parking, and other expenses for every single day that I worked. I'm thankful that I'm now working two part-time jobs, one of which has full benefits.
  12. by   muffin7
    I didn't think of the workers' comp aspect. Are you sure about the 15% tax?

    Congrats on your two part-time jobs
  13. by   lcc1080
    No - I'm not positive, but I think it's something like that. You can check this out on the IRS website, also by general subject search on the web. You really can't deduct everything, like people say you can - there are so many IRS rules, and the acct I went to, for instance advised me to not even deduct use of my downstairs, which does not even look like a living room, because of my desk and numerous bookshelves/files/office equipment, as he said this is a "RED FLAG" for the IRS to audit you - which you don't want! Your biggest deduction would be the self employed health ins premiums, and this still leaves you with a significant amount of self employment taxes to pay each year - I was kind of surprised when I found out what I owed. Good luck if you decide to go this route.