It is common for Dental Offices to have temp workers, that may work for a day, or a few days. Many dentists will just pay these workers with a cash or check at the end of the day instead of adding them on payroll. For the obvious reasons of the administrative aspect of setting up an individual, processing paper work, where they will just be working for that one day.
Recently we have seen a flurry of TWC audits for Dental offices. In conversation with a TWC Auditor, we were told the agency is looking more closely into worker classifications of Dental Offices, due to they way many offices handle temp workers.
What should Dental Offices be doing?
- If you have a Doctor working as a 1099- A good strategy would be to engage doctors that have a PLLC setup- and setup a Business to Business Contract with them. This in most cases will avoid the scrutiny of TWC officers. This can also benefit them greatly if they are setup properly. Reach out to our staff to see how your 1099 Doctors can save thousands in taxes with a proper setup, and reduce your risk of loosing a IRS or TWC audit due to misclassification.
- For Temp workers- Get all of their paperwork before they start. If you pay them via check then run a off cycle payroll for them and take out appropriate taxes. If you are a Virjee Consulting client on our payroll program our team can assist you in this. This goes for even those that work one day.
- Lastly be sure to speak to your Dental CPA about this important update and how to protect yourself.
Written by Omar Virjee, CPA. For more information on our services, please feel free to contact one of our Dental CPA team members by calling 713-396-3172 or emailing omar@virjeeconsulting.com
