My job made me an independent contractor, what does this mean for me?

Nurses General Nursing

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Hello nursing world! My job (a small non profit clinic) apparently made me an independent contractor several months ago without telling me. They did so because it will help them save money? I graduated 2 yrs ago and am not familiar with independent contracting.I am wanting to know what this means for me in terms of protecting myself both legally and financially. The clinic does not provide malpractice so I have always carried my own. I work full time and have for 2 yrs with this company. It is my only job and I get a paycheck every 2 weeks.They clinic provides all supplies needed for PT care.I do not know if I need to sign any forms to stay legal or what this means for taxes. Should I ask for more money? Can they make the decision to make me independent or is that something I have to be part of? Is this a good or bad thing for me?Any help would be greatly appreciated!:nurse:

They told me i was but after doing research, I do not fit the description at all. I plan on it. Thank you 4 the support

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Specializes in Emergency & Trauma/Adult ICU.

Do a quick calculation of 15.3% of your pay for the last six months.

And just for a rough estimate (as I don't know your marital status, deductions, tax bracket or other financial info) -- calculate 12% of your gross pay for the last six months.

Add those numbers together.

And that is what you'll be coughing up to the IRS next April 15, if you don't seek assistance on this.

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wow that is so not ok.=( I just graduated 2yrs ago and still paying of school loans ect. I am by no means "on my feet" yet or able to pay anywhere near that. Who should I talk to about this? I was going to give my job the opportunity to correct the situation if possible because I LOVE it there

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Believe me, they made their decision to do this, and they will never correct the situation. Look for a new job and waste no more time in seeing that tax professional. You already owe estimated federal taxes for about two quarters as a minimum as I see it.

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Specializes in Emergency & Trauma/Adult ICU.

If an accountant or tax preparation service (like H & R Block) did your taxes last year, I would call them first. If you did your own taxes last year, dig out a copy of your return and make an appointment with a tax preparer (check your local yellow pages). Meet with them and go over your situation.

See http://www.irs.gov/businesses/small/article/0,,id=99921,00.html for the IRS' interpretation of employee vs. independent contractor. Contact an attorney if you believe you are being incorrectly classified.

You'll want to do these things immediately.

Good luck to you.

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Specializes in LTC, Acute Care.

I'm just dumbfounded that you weren't notified at all.

I assure you that if your hourly rate (if you are hourly) did not change, you received a big pay cut when you went from employee to independent contractor, even though your paychecks look bigger. You may love your job, but this is sneaky to the max. I'd skedaddle out of there yesterday rather than tomorrow.

Maybe they assumed you were reading your deductions on your check stub and would magically come to the conclusion that you were now an independent contractor. It's super crappy that they wouldn't give you a heads up so you knew to take out quarterly taxes.

The IRS will not like this...

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If they have you as an independent contractor, you are now working without any workers compensation. So if you have a blood borne incident or hurt yourself on the job, you are on your own and will have to pay 100% of the costs.

I would think the state labor board would be a good place to ask. The state labor board does not like it when an employee is illegally called an independent contractor as it means the employer is trying to also not pay worker's comp. coverage.

It's worth talking to your employer about (after you do your research) as they may not realize just how illegal what they are doing is. And, they may have to pay all the social security, fed and states taxes on the money that they paid you so far as an independent contractor since it was done illegally. If you don't contest it, YOU will be the one to pay all these taxes on what you have earned so far.

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They started giving me a paycheck instead of direct depositing my pay. I didn't really think twice about it at the time but grew tired of going to the bank so often, only twice a month but still =). I guess they seemed bigger but I never complained about to much $.I asked if they could go back to direct deposit and then the new office lady spilled the beans. They do not offer vacation time, sick time, holiday pay or anything like that. I do love my job there and hate to lose it over pay

I don't get it. You are now 100% sure you are an employee but your paychecks are bigger. Are they taking taxes out? If not, you are an independent contractor which I don't think meets the definition set by the IRS. The IRS has strict rules as to who is classified as an independent contractor. When I ran a DME business we had certain criteria we had to meet to call someone an IC.

I suspect since they aren't giving you vacation, sick time, etc. that they may have made you an prn employee. If thats the case they are taking huge advantage of you. Take a look at your check and see if they are taking taxes out. That should tell you if you are an IC.

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Unbelievable that they would pull this. Are ALL the employees IC or just the ones that are paid the most (nurses)

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Specializes in LTC, Acute Care.

I was under the assumption when I read this that when the OP said she was 100% sure she was an employee, she meant that she was sure she was working in the capacity as an employee because she was not setting her own hours, setting her pay rate, etc., like an independent contractor would do. I may be off my rocker, though...

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I am 100% sure that I am an employee by IRS guidelines, but they have me as an IC. I am not sure if others are ICs or not. I work for them 5 days a week and am def the most paid (25 an hr). I am so upset with this situation =(

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Just so you know, $25/hr as an IC is getting royally bent over. I had my own business as an IC for a company I used to work for. After you figure everything in, unless the other RNs are only getting paid about $12 and hour as employees you are getting hosed.

Also, IMO, your place does not sound like a great place to work, even ignoring what they are doing with regards to your employee/IC situation. $25/hr with basically zero benefits is rediculous. The average employee, in the US, has about 40% of their total compensation come as benefits, meaning if their "pay is $50k, their total comensation is closer to $70k. $25/hr works out to roughly $50k a year in "pay". With no benefits, you are receiving the equivalent of $35k (17.50/hr) and paying your benefits out of pocket.

This is all, of course ignoring the fact that you are female and females generally pay less for health insurance on group plans than they do with individual plans (young healthy men are generally the opposite). There are a number of other problems I would have receiving your compensation package, as well. Doesn't sound like a very great place to work, to me. YMMV.

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