b'CAREER GUIDE|enjoy the added responsibilities, while others may see it as a downside.In the medical Lower Hourly Rate: Due to all the bene- world, there are fits provided, hourly rates for employees are generally lower than contract ratespros and cons to (on a per hour basis).At the same time, becoming an indepen- being an employee dent contractor also carries pros and cons. Starting with some of the upsides: or contractor. Higher Rate Per Hour: Many contractUnderstanding this employees are offered a higher rate per hour. Because you receive no bene- helps clinicians make fits, and your taxes are not paid by your employer, most employers are willing tothe decision that pay a higher rate per hour. More Flexibility: When you are a con- is right for them tract employee, you can choose to workand their individual or not work. You can decide to set a max-imum number of hours you are will- circumstances.ing to commit to working, and you can choose when to work. This can mean that you can commit to activities outsidenot be deducted on your taxes, as theiday, you are not paid for the day. Also, of work more easily, as well as reducelaws frequently change, and penaltieswhile you have the freedom to travel as your chance of burnout as a clinician. can be high if you inappropriately applyoften as you like, these days are not paid.Less Additional Responsibilities:deductions.Budgeting For Taxes: As an indepen-Generally, contract clinicians are onlyWhile there are benefits of being an inde- dent contract employee, you have no one assigned to patient care. Unless youpendent contract employee, there are somewithholding taxes each pay period. You agree to assist in other types of activities,downsides to be aware of when taking on thisalso do not have someone else paying for you are not expected to do many otherrole. Some of them are: half of your social security and Medicare aspects that employees take on as part ofInconsistent Pay And Hours:taxes. This means you need to do it your-their job. Keep in mind that documen- Generally, contract employees are notself (or pay an accountant to take care of tation is still expected to be completed,guaranteed to be paid a certain num- this). Many first-year contract employees and many contractors will need to dober of hours each week. You are paidare unpleasantly surprised in April when this as unpaid time (which is usuallyfor only the time you work. This meansthey receive their tax bill. I have seen part of the contract). you are only paid on a per-visit basis orsome need to take out a loan for this, as Increased Exposure To Differentper hour of patient care. If you are in athey did not anticipate or save the funds Practice Settings: Many contracthome health setting or long-term carerequired. employees chose to work for more thanand a patient refuses treatment thatMalpractice Insurance: If you chose to one facility. This means they can keepday or cancels. you are not paid. In ando this type of work, you need to inves-their skills sharp in various settingsoutpatient setting you are paid for thetigate your malpractice coverage. While instead of remaining in one for yearshours that you are in the clinic, but thisvarious facilities have coverage, you may and years. This can reduce the chance ofcan be reduced at any time (if weatherneed to have your own insurance to be burning out. is bad and patients cancel, if patients dofully covered. I have seen some facili-Tax Advantages: There are some taxnot show, etc.). Often contract employ- ties fully cover contract help, and others advantages you can enjoy in this role.ees will be canceled at the last minuterequire the clinician to obtain their own. Often if you purchase supplies to use forif patient demand reduces. This leads toMake sure to understand the policy on work, you can receive a tax deduction.inconsistent pay and reduced ability tothis at each facility to avoid any unpleas-Also, in some cases the expense of mile- budget personal expenses. ant surprises.age or use of your car can serve to reduceNo Benefit Package: Most independentWhile there is no one answer for the ques-some of the tax burden. It is advised thatcontractors do not receive paid time off,tion Is it better to be an employee or indepen-you work with an accountant each yearretirement benefits, or healthcare ben- dent contractor? it is important to weigh the to fully understand what can and can- efits/options. Unless you work on a hol- pros and cons of each.n12 ELITEHEALTH GUIDE|2019| www.elitecme.com'