Friday, February 8, 2008

Regulations determine whether you are self-employed.

Hi June,

I found your website and find the info quite helpful...thanks!!

My wife and I have a situation at hand that will require a decision for her to remain a PRN Physical Therapist (employee) or a contract therapist (self employed).

The agency is going to straight contract and phasing out the PRN, she really does not have much of a choice if she wishes to remain with this company. She currently gets no benefits from the company in regards to vacation, PTO, 401K, etc....strictly wages. She does get mileage reimbursement, which is only 0.36/mile vs the gov rate. She typically sees 32-35 patients per week @ $60/ea or ~2k gross/week. She also typically puts ~600 miles/week on the vehicle. At the moment, they want to switch to contract therapists and pay the same amount (60/ea) WITHOUT the benefit of mileage reimbursement.

Although educated, I do not know the "ins and outs" of which is more advantageous.

I have read your advice links and wonder what your opinion is in regard to this case.

And thanks for the wealth of information on your website.

Brent from Louisiana

Dear Brent,

ou are welcome. Pleased my info helps you.

Employee or self-employed is not an arbitrary decision. Conditions must be met by the worker -- your wife -- and the person or agency for whom your wife works.

If your wife has been an employee the agency and none of the working conditions have changed the agency cannot simply change her worker status. Call your local Department of Labor if the agency insists.

You should also read these posts
employee vs. self-employed for a better understanding of the requirements and conditions required for self-employment.


Check out my book Self-employed Tax Solutions. It will simplify your tax and financial life, and save you money!

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