Dealing with 1099's as a dental hygienist
In 2018 I left my full time hygiene job in search of new, exciting opportunities...
The change after 12 years in one office was interesting to say the least and maybe I'll share some details of that transition in the future.
What I do want to share is what I learned about taxes, W-2's and 1099's... and a fun little form called the SS-8.
I kid you not, I personally had six W-2's for the 2018 tax year- sounds fun, right? Nope.
To make things even more exciting I received one 1099.
Prior to this experience I didn't have any knowledge of how this impacts our profession.
Please believe me when I tell you I am in no way someone you should take tax advice from. (Consider that statement my legal disclaimer⬆️)
With that said here is what I learned navigating this situation myself.
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Dental Hygienists are not independent contractors. This continues to be a battle between hygienists and dentists- but until we are legally permitted to practice independently we CANNOT be taxed as independent contractors. We are classified as a W-2 common law employee.
Why would a dentist prefer a 1099 over a W-2?
The answer I was given was the particular office I was working for had an issue in the past where a hygienist that worked only a few days for them quit her full time job and filed for unemployment and the office where she subbed was also contacted as part of her claim.
Probably a more common reason is by claiming you as an independent contractor you are responsible for paying the entire 15% tax. With a W-2 you and the employer split the 15%.
How do you undo what's already been done?
Ideally you would clear this up before beginning work- but if you're like me it's already too late.
If you are currently navigating this situation yourself and want to speak with someone I have the contact of all contacts for you!
Meet Amanda Landers RDH !
Amanda is a hygienist who is also a passionate and dedicated advocate in helping hygienists and dental offices legally follow tax law. She has a wealth of experience and knowledge and is happy to speak with you!
Find her on Facebook or contact her via email @ savannabelle02@gmail.com
Additional information can also be found in the January 2020 edition of RDH magazine:
Other tax related posts:
What documents do I need to file my taxes? (2012)
The change after 12 years in one office was interesting to say the least and maybe I'll share some details of that transition in the future.
What I do want to share is what I learned about taxes, W-2's and 1099's... and a fun little form called the SS-8.
I kid you not, I personally had six W-2's for the 2018 tax year- sounds fun, right? Nope.
To make things even more exciting I received one 1099.
Prior to this experience I didn't have any knowledge of how this impacts our profession.
Please believe me when I tell you I am in no way someone you should take tax advice from. (Consider that statement my legal disclaimer⬆️)
With that said here is what I learned navigating this situation myself.
-------------
Dental Hygienists are not independent contractors. This continues to be a battle between hygienists and dentists- but until we are legally permitted to practice independently we CANNOT be taxed as independent contractors. We are classified as a W-2 common law employee.
Why would a dentist prefer a 1099 over a W-2?
The answer I was given was the particular office I was working for had an issue in the past where a hygienist that worked only a few days for them quit her full time job and filed for unemployment and the office where she subbed was also contacted as part of her claim.
Probably a more common reason is by claiming you as an independent contractor you are responsible for paying the entire 15% tax. With a W-2 you and the employer split the 15%.
How do you undo what's already been done?
Ideally you would clear this up before beginning work- but if you're like me it's already too late.
You can talk personally with the office and ask them to correct the mistake
or
You can file a form called a SS-8, according to the IRS this form will convert your 1099 to a W-2. You will be able to file your taxes and the office that apparently sent you the wrong form will receive a letter explaining why dental hygienists cannot legally be classified as independent contractors. This will not cause any further investigations for the office as long as they comply moving forward.
Find the SS-8 form here
If you are currently navigating this situation yourself and want to speak with someone I have the contact of all contacts for you!
Amanda is a hygienist who is also a passionate and dedicated advocate in helping hygienists and dental offices legally follow tax law. She has a wealth of experience and knowledge and is happy to speak with you!
Find her on Facebook or contact her via email @ savannabelle02@gmail.com
Additional information can also be found in the January 2020 edition of RDH magazine:
Other tax related posts:
What documents do I need to file my taxes? (2012)
YOU HAVE ALWAYS BEEN MY SHERO/HERO plus me personal ANGEL
ReplyDeleteMY PERSONAL SALVATION IN THE DENTAL WORLD
ReplyDeleteI hate typos seriously...my bad
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