Dental Associate Paying Assistant as 1099, Right or Wrong?

I work in an office on weekends as an independent contractor and there is an assistant who is also works only weekends. The owner pays me 45% collection (as opposed the usual norm of 35%) but wants me to pay the assistant myself by a check from me.

Should I get her to sign a W-9 and how often should I report her earnings to IRS?

Should I also get her to sign an independent contractor with me?

I am a new grad and I want to make sure I don’t do anything illegal.

Of course he wants YOU to pay the assistant, they don't want them on their payroll and they don't want to accept the risk of calling them an IC.

JUST SAY NO, they have to pay them, not you. If you're doing them a favor by working weekends they should cave and pay....if they are doing you a favor, they'll stand firm.

Thank you Mr. Lott for your reply. I called him and told him I am not having it. We finally agreed on 40% and he pays the assistant. Mr. Lott I am practicing in MD and not too far from you. When its tax time next year I will give you call. Thanks again.

You’re welcome. If you're going to be in the neighborhood give me a couple days notice, maybe we can meet for breakfast or lunch.

Tim

This post first appeared on Dentaltown.

Send your questions to Tim Lott, CPA, CVA at tlott@dentalcpas.com

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