Academy of Chiropractic Personal Injury & Primary Spine Care Program
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"Independent Contractors and the Government"
Currently, the state and federal government have taken a hard look at independent contractors. Many of you have doctors and staff members that are independent contrators and you provide them with 1099s come tax time. You've been doing so "quietly" for many years. However, now the IRS and many state tax departments are going back as far as 2009 and auditing these practices. They are taking a very hard look using a very "narrow" definition of a 1099 employee and rendering significant fines to businesses that do not meet that narrow criteria.
If you have a doctor in your office that works for you and is paid on a 1099 and maintains regular hours or has set appointments, this is a huge flag. If you have any non-professional staff members that work in your office and have set hours, this is another significant problem.
If another professional is in your office for any reason, he/she must operate under his/her own professional corporation, have his/her own federal tax ID number, have his/her own appointment book or computer business system, segregated EMR system, independently paid malpractice and signage indicating he/she is truly independent.In the past, I have recommended and accountant to you, Maurice Mauner, 631-661-5252, and should you have any questions, I have arranged for him to take your phone calls and not charge you for his time to answer any questions you might have on the subject.
Understand that if you have 1099 arrangements, this is a prime focus for the state and federal government and you will be looked at. Please ensure that you're doing it correctly.