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TAX INFORMATION

State and Federal Laws require that while you are working as a temporary you are treated as an employee and not an independent contractor. Therefore, you become the employee of the person who pays you and that person must deduct your social security tax.
At the end of the year you will receive a W-2 from Dental Professionals which covers salary paid to you by Dental Professionals. Dentists who paid you directly should be sending you a W-2. If you accepted a check from a dentist who did not deduct your taxes, then you will be faced with some extra problems. You will have to file Form 1040 Schedule SE, Computation of Social Security Self-Employment Tax. This will increase the normal tax you pay by about 7%. Failure to file this form can result in severe penalties.

When you allow the dentist to pay you as an independent contractor, you need to be aware that you are earning 7% less than if you were paid as an employee. You also do not have the insurance protection that an employee has; therefore, if you were injured or got hepatitis or some other illness, you would have no protection unless you carry your own personal insurance. You also cannot claim unemployment benefits. For an example, if your hourly wage was $10.00 per hour and you were paid as an employee, the employer pays $.70 (7% above and beyond your wages) into your social security fund. By law an employer has to match whatever you personally pay for social security. This makes your total earnings $10.70 per hour. The employer sends the $.70 straight to your social security retirement fund; therefore, you are not taxed on it as income. If you were not treated as an employee, then at the end of the year you have to pay your normal social security contribution of 7% plus the additional 7% which the employer did not pay. Your total earnings now become $10.00 per hour less $.70 or $9.30 per hour. Multiply this by 8 hours and you have lost $5.60 for that day - enough for a good lunch!

We apologize if this happened to you. When our clients sign your time sheets that have a "B" code they have agreed to pay your taxes. The State and Federal laws also protect you by clearly stating that when an employer has the right to supervise your work they must treat you as an employee. Under these laws you do not qualify to be an independent contractor. If you are faced with this problem, please may we ask that you simply do not accept the check. Call our office and we will clear up the matter or pay you ourselves.

We hope all of your experiences as a temporary are positive ones. If you are not treated with respect or there are any other problems, please put them in writing and send them to us. We will keep your name confidential. The information may help us to bring about some improvements. We also encourage you to do the same regarding our office and staff. If we have not treated you properly, then we should make some changes.

We welcome you on our team of Dental Professionals!

 

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