Part-time associate should be classified as employee

April 25, 2012

Clasifying a part-time employee can pose a challenge. Discover the distinctions to be made between employee and independent contractor.

Q: I have been treating the part-time associate in my practice as an independent contractor for the past 2 years, but my accountant suggested that she should be classified as an employee instead. I don't want to make the change because of the additional payroll taxes. Do I have to reclassify her?

When someone's work is under your control, and the person works in your office and provides regular ongoing services, you are required to treat that person as an employee by withholding income taxes and fmatching payroll taxes. Further, if you treat her as an independent contractor and she fails to pay her taxes, you can be held liable for those taxes.

Answers to our readers' questions were provided by Medical Economics editorial consultant David J. Schiller, JD, Schiller Law Associates, Norristown, Pennsylvania. Send your money management questions to medec@advanstar.com Also engage at http://www.twitter.com/MedEconomics and http://www.facebook.com/MedicalEconomics.

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