• Facebook
  • Youtube
  • Instagram
  • LinkedIn
Call us now: (602) 344 9865
Chelle Law
  • Home
  • Medical Contract Attorney
    • Dentist Contract Attorney
      • Dental Associate Employment Contracts 
        • Can a Dental Associate Break Their Contract?
        • How a Dentist Should Negotiate a Contract
        • How is a Dentist Given a Draw in a Contract?
        • Red Flags in a Dentist Employment Contract
        • What Should a Dentist put in a Termination Letter?
      • Dental Malpractice Insurance
        • Claims Made Insurance for a Dental Associate Explained
        • How Much Does Tail Insurance Cost for a Dentist?
        • Occurrence Based Insurance for a Dental Associate Explained
        • Should a Dentist Choose Claims Made or Occurrence Insurance?
        • What is Tail Insurance for a Dentist?
      • Dental Non Compete Clause
        • Dental Associate Non Compete vs Non Solicit
        • Dental Non Compete Mile Radius Explained
        • Dental Non Compete Time Limits Explained
        • Dentist Non Compete Restricted Offices Explained
        • Is a Non Compete Enforceable Against a Dentist?
      • Dental Contract Benefits 
        • Does a Dentist Have to Repay a Bonus if they Terminate the Contract?
        • How Much PTO Should a Dental Associate Get?
        • How Much Should a Dentist get for CE Expenses?
        • Should a Dentist be Reimbursed for Moving Expenses?
        • What Expenses Should a Dental Practice Pay For a Dentist?
      • Dental Independent Contractor Agreements
        • Are Dentists Usually Self Employed?
        • Dentist Independent Contractor Tax Deductions
        • Dentist Independent Contractor vs Employee
        • Is a W2 or 1099 Better for a Dental Associate?
        • What is a 1099 Dentist?
    • Nurse Practitioner Contract Attorney
      • Nurse Practitioner Employment Contracts
        • Can a Nurse Practitioner Break Their Contract?
        • How a Nurse Practitioner Should Negotiate a Contract
        • Red Flags in a Nurse Practitioner Employment Contract
        • What is the Most Common Nurse Practitioner Compensation Model?
        • What Needs to go in a Nurse Practitioner Termination Letter?
      • Nurse Practitioner Malpractice Insurance
        • Claims Made Insurance for a Nurse Practitioner Explained
        • How Much Does Tail Insurance Cost for a Nurse Practitioner?
        • Occurrence Based Insurance for a Nurse Practitioner Explained
        • Should a Nurse Practitioner Choose Claims Made or Occurrence?
        • Tail Insurance for a Nurse Practitioner Explained
      • Nurse Practitioner Non Compete Clauses
        • How Many Locations Should a Nurse Practitioner Non Compete Apply To?
        • Is 10 Miles a Reasonable Non Compete for a Nurse Practitioner?
        • Is a 2 Year Non Compete for a Nurse Practitioner Reasonable?
        • Is a Non Compete Enforceable Against a Nurse Practitioner?
        • Nurse Practitioner Non Compete vs Non Solicit
      • Nurse Practitioner Contract Benefits
        • Does a Nurse Practitioner Repay a Bonus if the Contract is Terminated?
        • How Much Paid Time Off Should a Nurse Practitioner Get?
        • Should a Nurse Practitioner be Reimbursed for Moving Expenses?
        • What Benefits Should be in a Nurse Practitioner Offer Letter?
        • What Nurse Practitioner Expenses Should an Employer Pay For?
      • Nurse Practitioner Independent Contract Agreements
        • Is a W2 or 1099 Better for a Nurse Practitioner?
        • Nurse Practitioner Independent Contractor Tax Deductions
        • Nurse Practitioner Independent Contractor vs Employee
        • Nurse Practitioner Self Employed vs Independent Contractor
        • What is a 1099 Nurse Practitioner?
    • Optometrist Contract Attorney
    • Physician Contract Attorney
      • Medical Employment Contracts
        • J-1
          • ECFMG Eligibility
        • How Many Years Should the Term of a Physician Contract Be?
        • Should a Physician Accept an Arbitration Clause?
        • What Is the Best Without Cause Termination Length in a Physician Contract?
      • Medical Malpractice Insurance
        • What Is Claims-Made Insurance For a Physician?
        • What Is Occurrence Insurance for a Physician?
        • Should a Physician Choose Claims-Made or Occurrence Malpractice Insurance?
        • What Is Tail Coverage for Physician Malpractice Insurance?
        • When Does a Physician Need to Pay for Tail Insurance?
        • How Much Does Tail Insurance Cost for a Physician?
        • 3 ways a physician can get out of paying for tail insurance
      • Non-Compete Agreements
        • Is 10 Miles a Reasonable Restriction in a Physician Non-Compete?
        • Is a 2-Year Physician Non-Compete Too Long?
        • How Many Locations Should a Physician Non-Compete Apply to?
        • Is a Non-Compete Enforceable Against a Physician?
      • Medical Professional Contract Benefits
        • How Much Should an Employer Give a Physician for CME Expenses?
        • What Physician Business Expenses Should an Employer Pay for?
        • How Much PTO Should a Physician Get?
        • Should A Physician Receive Relocation Reimbursement When Moving for a New Job?
        • Does a Physician Have to Repay a Sign-On Bonus When They Leave?
        • Does A Physician Have to Repay Relocation Assistance If They Leave?
      • Independent Contractor Agreements
        • Can a Physician be an Independent Contractor?
        • Physician Independent Contractor vs Employee
        • Is a W2 or 1099 Better for a Physician?
        • What is a 1099 Physician?
        • What Percentage of Physicians are Self Employed?
    • Physician Assistant Contract Attorney
      • Physician Assistant Employment Contracts
        • Can a Physician Assistant Break Their Contract?
        • How a Physician Assistant Should Negotiate a Contract
        • Red Flags in a Physician Assistant Employment Contract?
        • What is the Most Common Physician Assistant Compensation Model?
        • What Should Go Into a Physician Assistant Termination Letter?
      • Physician Assistant Malpractice Insurance
        • How Much Does Tail Insurance Cost for a Physician Assistant?
        • Should a Physician Assistant Choose Claims Made or Occurrence Insurance?
        • Tail Insurance for a Physician Assistant Explained
        • What is Claims Made Insurance for a Physician Assistant?
        • What is Occurrence Based Insurance for a Physician Assistant?
      • Physician Assistant Non Compete Clauses
        • How Many Locations Should a Physician Assistant Non Compete Apply To?
        • Is 10 Miles a Reasonable Non Compete for a Physician Assistant?
        • Is a 2 Year Non Compete for a Physician Assistant Reasonable?
        • Is a Non Compete Enforceable Against a Physician Assistant?
        • Physician Assistant Non Compete vs Non Solicit
      • Physician Assistant Contract Benefits
        • Does a Physician Assistant Repay a Bonus if the Contract is Terminated?
        • Should a Physician Assistant be Reimbursed for Moving Expenses?
        • What Benefits Should Go In a Physician Assistant Offer Letter?
        • What Physician Assistant Expenses Should an Employer Pay For?
      • Physician Assistant Independent Contractor Agreements
        • Can a Physician Assistant be Self Employed?
        • Is a W2 or 1099 Better for a Physician Assistant?
        • Physician Assistant Independent Contractor Tax Deductions
        • Physician Assistant Independent Contractor vs Employee
        • What is a 1099 Physician Assistant?
    • Veterinarian Contract Attorney
      • Veterinary Associate Employment Contracts
        • Can You Break a Veterinary Associate Contract?
        • How is a Veterinarian Given a Draw in a Contract?
        • How to Negotiate a Veterinary Associate Contract
        • Red Flags in a Veterinary Associate Contract
        • What Should be in a Veterinary Associate Termination Letter?
      • Veterinary Malpractice Insurance
        • What is AVMA Excess Limit Coverage?
        • What is AVMA Veterinary License Defense Insurance?
        • What is Occurrence Insurance for a Veterinarian?
        • What is the AVMA PLIT?
        • Why Veterinarians Do Not Need Tail Insurance
      • Veterinary Non Compete Agreements
        • How Many Locations Should a Veterinary Non Compete Apply To?
        • Is a Non Compete Enforceable Against a Veterinarian?
        • Veterinarian Non Solicit vs Non Compete
        • Veterinary Non Compete Mile Radius Explained
        • Veterinary Non Compete Time Limits Explained
      • Veterinary Professional Contract Benefits
        • How Much PTO Should a Veterinary Associate Get?
        • How Much Should a Veterinarian get for CME Expenses?
        • Must a Veterinarian Repay a Bonus if They Terminate the Contract?
        • Should a Veterinarian be Reimbursed for Moving Expenses?
        • What Veterinarian Business Expenses Should an Employer Pay For?
      • Veterinary Independent Contractor Agreements
        • Pros and Cons of Employment at a Corporate Veterinary Office
        • Should a Veterinarian be a W2 or a 1099?
        • Veterinarian Independent Contractor Tax Deductions
        • Veterinary Independent Contractor vs Employee
        • What is a 1099 Veterinarian?
  • Our Attorneys
    • Robert S. Chelle, Esq.
    • Renee Osipov, Esq.
    • Erin Howlett, Esq.
  • Results
  • Contact Us
  • Search
  • Menu Menu

What is a 1099 Dentist?: Dental Practice Independent Contractor Designation for a Dentist

What is a 1099 dentist? There are two ways you can work for a dental practice, either as an employee or you would receive a W2 and taxes are withheld or you’d be an independent contractor and then you would receive a 1099 at the end of the year, and no taxes are withheld from it. You would just receive all the compensation that was agreed to, and then the dentist would be responsible for paying taxes quarterly or at the end of the year. If you are an independent contractor, what are some of the benefits and disadvantages of that? Well, the advantages are you can deduct almost all of the business expenses that would go into working as a dentist.

So, mileage, car expenses, cell phone, supplies, malpractice insurance, you can depreciate assets, licensure, DEA registration, those types of things. Normally, a dentist would create an LLC, they’d create a bank account, they’d get an EIN, and they would then run everything through that. All of the expenses would go through that, all the compensation would go through that. And then you just take draws when you want to use the money for yourself. There are situations where it doesn’t make sense to be an independent contractor. As an employee, you get all of the ancillary benefits that come with it like health, vision, dental, disability, life, and retirement. They’re going to pay for your dental license, DEA registration, continuing education, and your malpractice premium. Maybe if you have a claims-made policy, they’ll pay for your tail as well.

They’re going to pay for a ton of things and make it relatively easy for the dentist to just opt into those things. Whereas if you’re an independent contractor and you aren’t an employee anywhere and you need those things, you are going to be responsible for securing them for yourself. And then some dentists just simply don’t want to do that or are just uninterested in spending all the time and creating the LLC and running it as a business and that type of thing. For some people, they love it to have the freedom of being an independent contractor. However, there are many others that find it completely cumbersome and not worth their time. Is one better than another? It would depend upon the situation.

Ideally, an independent contractor would likely be working probably part-time or at least at their own pace, meaning, they could work as much as they want, or as little as they want, if they worked it out with the dental practice. As an employee, for most dentists, they’re paid a straight base salary, or they would receive a percentage of their net collections. Daily rates are very common for dental associates as well. And then all the taxes would be taken out of that. And then as I said before, they would just pay for all of the things necessary to be a dentist. If you have a complete set schedule, and let’s just say, you’re working nine to five, Monday through Friday, maybe you have a little bit of call responsibilities for emergency after-hour situations, in that scenario, it wouldn’t make a lot of sense to be an independent contractor.

If the employer is asking you to do that, in my opinion, it’s most likely that they just don’t want to pay employment tax. And they’re kind of passing that on to the dentist. So, if you have no control over your schedule, if you have no control over the supplies, the staff, or any of that kind of thing, you’re likely an employee or a quasi-employee. The IRS releases a 20-factor test that kind of goes through, alright, well, if this is part of the employment relationship, you’re probably an employee, or if this is part of it, you’re probably an independent contractor. If you just Google like a 20 factor IRS test, you can come up and you could just look and say, alright, well, does this fit what they’re asking me to do? And then, am I an independent contractor in this situation?

I mean, the government can, though it’s extremely rare this would happen, but they could come back and say, look, they were not an independent contractor, they were an employee. And then they could go after back taxes against the employer. I don’t really have an opinion on what is better if you have the choice between one or the other, it’s rare you would. Usually, the dental practice is going to dictate what type of employment relationship exists. I think it really is situationally dependent. If you are thinking of working as an independent contractor, I would implore you to go meet with an accountant and just kind of set everything up properly. I don’t think a tax attorney is necessary for this.

So, just meet with an accountant, let them know what you need to do, set up the LLC, and kind of get everything together so you can maximize your tax deductions and compensation ultimately.

Dental Practice Employees Tax Deductions?

What are the tax deductions that dentists can take when they are independent contractors?  If you are an independent contractor or have been presented with independent contractor opportunity, at the end of the year you’ll receive a 1099 and no taxes will be taken out of the compensation that you’re being provided by the employer. You will not get a W2 and then you will be responsible to pay for those taxes either quarterly or at the end of the year. If you are thinking about being an independent contractor and haven’t before, what are some things you need to think about? And then what are the possible tax advantages of doing that? First, I’m not a tax attorney, I’m an employment contract attorney.

So, I’m going to give you kind of the bare-bones knowledge that I have based on drafting and reviewing independent contractor agreements for the last couple of decades. But I would suggest if you are thinking of beginning as a first-time independent contractor, you should talk to an accountant, I’m not sure a tax attorney is necessary. And then you would set up an LLC, a bank account and then run everything through that. But they can kind of walk you through what the tax advantages are as far as setting that up. Now, if you are a 1099 independent contractor, as I said before, you would essentially think of yourself as your own little corporation. So, you’d set up a limited liability company/corporation, and then you would get your own federal tax ID number, you would set up your own bank account, and then you’d run all the compensation through that.

All the business expenses would go out of that as well. And then you would be able, at the end of the year, to deduct those things. I’m just going to briefly go through a list of things that you can deduct, and then we’ll kind of talk about why an independent contractor arrangement might not make the most sense. First, you can deduct mileage, health insurance premiums, home office deductions, work supplies, travel, car expenses, and cell phones. In this case, be either business insurance or malpractice insurance, and then you can depreciate the assets as well. All the things that would kind of go into working as a dentist in that situation, you can deduct. Now, if you’re just coming into a practice to work a few times a week, and they’re going to pay you as an independent contractor, obviously, you’re not going to be able to deduct the supplies that they give you, or if the practice somehow decides to pay for your annual malpractice premiums, couldn’t do that either.

IRS Work Deductions

But there are a whole bunch of things that you can do and there are some creative ways of making it worthwhile. Now, you’re not going to get all the ancillary benefits that a normal employee would like health, vision, dental, disability life retirement, they’re not going to pay for your dental license, DEA registration, or continuing education, you won’t get any paid time off. You’re not going to get any of that as an independent contractor. But as an independent contractor, it should be kind of easy in, easy out. Meaning, that you can kind of work as little or as much as you want. And you are essentially, or at least should be, in charge of your own schedule. There are situations where being an independent contractor would make no sense. And then there are probably other situations where being an employee wouldn’t make a lot of sense either.

It’s kind of situationally dependent, so you must weigh, alright, well, If I have to pay for all of these things, although I can ultimately most likely dig to most of them, but you’re not going to be able to easily get all the insurance if your only work is an independent contractor, the health insurance is tough to get. Disability is not tough to get but expensive, retirement, like those things are not easy to set up. And I know that some dentists are just like, I don’t want to deal with that. I just want to be an employee. I want them to set everything up and then I just opt into it. I don’t want to have to deal with all of this stuff on my own. And that’s great. But if you are an independent contractor and you are paying for all those things, then you should ultimately probably be compensated at a little higher level than if you are an employee because the employer doesn’t have to pay employment tax.

They don’t have to pay for any of the things that I went through: the licensing, the continuing education, the paid time off, all of that they’re spared from doing. So, it would make sense that if they’re going to be freed from all of those business expenses, that would at least pass on in some percentage to the dentist. Those are the tax deductions that a dentist can take when they’re an independent contractor. There are a bunch of factors that go into whether it makes sense or not. But hopefully, that was a little bit of information that you may have not had before.

Employment Contract Questions?

Contract Review, Termination Issues, and more!

For More Information >

Call Us Now: 602.344.9865

Contact Us

If you are in need of assistance or would like to hear more about the services we offer contact Chelle Law today!

Links of Interest

  • Home
  • Dentist Contract Lawyer
    • Dental Associate Employment Contracts 
    • Dental Malpractice Insurance
    • Dental Non Compete Clause
    • Dental Professional Contract Benefits 
    • Dental Independent Contractor Agreements
Google
Based on 121 reviews.
Melinda Striyle
Melinda Striyle
2022-06-12
Attentive, respectful, great to work with.
Jenn Lighthall
Jenn Lighthall
2022-06-10
Absolutely fantastic. I would give more than five stars if I could. Highly recommend!
Meghna C.
Meghna C.
2022-05-31
Renee was great to work with when negotiating my contract! I am a resident physician signing on for my first attending job, and I felt more comfortable with the language used in the contract after going over it with Renee. I also got a higher starting salary which made the price more than worth it. I would definitely use Chelle Law again!
Jennifer Nevis
Jennifer Nevis
2022-05-30
Erin Howlett saved me from a terrible situation and I can't thank her enough. I had accepted a veterinary dental residency in northern Illinois with a private practice. The letter of intent was routine yet the actual contract so punitive and predatory in nature that it was hard to believe it was from the same people. Erin believed I was worth more than the "Zero" this practice claimed. Without her on my side, I would have naively signed this "bait and switch" and been finacially and professionally ruined if I couldn't complete the 6 year commitment this practice demanded.
robin singh
robin singh
2022-05-27
I consulted with Chelle law for contract review. They were suggested by our employer. Renee osipov was incredibly helpful and was able to navigate me in right direction. I fully recommend them.
Melanie Schlote
Melanie Schlote
2022-05-22
Erin was so professional and very quick to respond. She took the stress away from contract reviewing and made me feel confident in this next step of my career.
Mitul Patel
Mitul Patel
2022-05-22
I contacted Chelle Law for my dental contract review. I am very pleased with contact review with Attorney Renee. Renee was very kind, helpful, honest, informative and knowledgeable. She had some solid advice regarding negotiations. Katie was very helpful to schedule appointment with Renee within few days. I had some questions next day and emailed her and she responded back to me within an hour. I HIGHLY RECOMMEND CHELLE LAW FOR YOUR CONTRACT REVIEW. THANK YOU!!
Anna Etzler
Anna Etzler
2022-05-20
Renee was wonderful to work with and helped me with a contract review for my first NP job. She took the time to help me understand each section of the contract and even helped me successfully negotiate so that the contract would best fit my needs. Chelle Law was very responsive to my needs and set up my initial review and revision review in a timely manner! I would highly recommend their services to anyone in the medical profession.
Alan W
Alan W
2022-05-16
Had the privilege of working with their attorney Renee. She was really thorough, professional, and went above and beyond in reviewing my contract. Couldn't have asked for a better experience.

Call Us Today!

602.344.9865

Hours/Office

Monday-Friday: 8:00am-5:00pm (MST/MDT)

Chelle Law 5425 E. Bell Rd, Ste 107

Scottsdale, AZ 85254

Contact Us Today!

5425 E. Bell Rd, Ste 107, Scottsdale, AZ 85254

info@chellelaw.com

Practice Areas

  • Professional Licensing Board Defense
  • Medical Contract Lawyer
  • Administrative Appeals & Hearings
  • Medical Contract Drafting
  • Fingerprint Card Attorney

Office Locations

  • Arizona
  • Indiana

Company

  • Robert S. Chelle, Esq. Founder & CEO
  • Sara Stark, Esq. Attorney
  • Renee Osipov, Esq. Attorney
  • Erin Howlett, Esq. Attorney
  • Charlie Hover, Esq. Attorney

Resources

  • Blog
  • Contact Us

Follow Us

© 2022 Chelle Law. All rights reserved.  Disclaimer & Terms of Use.  Privacy Policy.

Scroll to top

How Much PTO Should a Physician Get Download



How Much PTO Should a Physician Get?

4 Factors to Consider with PTO

How Much Does Tail Insurance Cost Download

How Much Does Tail Insurance Cost for a Physician?

4 Key Aspects of Tail Insurance for Physicians

Physician Contract Review Checklist

Where Should We Send the Physician Contract Checklist?

28 Essential Physician Contract Terms to Put You in a Positive Financial Situation for Years to Come.