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Some dental office positions are well suited for people who want to work part-time or those who prefer full-time work but enjoy the challenge of working in a variety of offices. Because of this, temporary positions for hygienists and assistants in dental offices across the USA have steadily increased over the years. This, in turn, has led to the birth of temporary dental staffing agencies like Kwikly.
Kwikly maintains the lead as the best temporary dental staffing agency for connecting dental offices looking to fill temporary dental positions with temporary dental professionals looking for work. Kwikly’s cutting-edge, easy-to-use app for temp work makes it simple and efficient for dental professionals to find the perfect fit and for dental offices to post job openings. When hiring temporary dental professionals, it is crucial to understand the difference between a W-2 employee and a 1099 independent contractor. This article will help take the mystery out of distinguishing between the two.
Kwikly Makes Hiring Easy for Dental Offices and Dental Professionals
Kwikly’s dental professionals are hired as W-2 employees—something most of our competitors do not do. This is a win-win for offices and dental professionals. Dental offices won’t have to worry about taxes, benefits, etc., when the need for a temporary hygienist arises, and dental professionals won’t have the responsibilities that accompany being an independent contractor—Kwikly handles all of the administrative tasks.
How To Classify Temporary Dental Professionals for Dental Offices in the USA
There are two ways a temporary dental professional may be classified: independent contractors or employees. The IRS defines each classification, and both have specific rules and tax guidelines to follow. To classify a worker accurately, the degree of control and independence between the employer and the worker must be taken into consideration.
- Behavioral control: Determine if the business controls when and how the work is done.
- Financial control: Consider the level of investment the worker has in the office, tools used, or whether they can experience a profit or loss.
- Relationship between the worker and the employer: Is there an employment contract? Does the worker receive benefits? Is the position a full-time, permanent position?
This can all get confusing, so it is important to seek guidance from your accountant or a tax attorney, whether you’re a dental professional or an office looking to hire one.
Independent Contractors
An independent contractor, sometimes called “a 1099-worker,” is a self-employed person who provides a service to another business. When hiring a dental professional who is also an independent contractor, it’s important to understand that they can work for any number of other offices and are not strictly committed to one dental office. Independent contractors will not have access to benefits packages or enjoy other perks a dental office may offer.
W-2 Employees
An employee, also known as a W-2 employee, is a professional directly hired by a dental office on either a full-time or part-time basis. Generally speaking, if they are hired on a full-time basis, they will enjoy the benefits and perks offered by an employer. Some of those benefits may include:
- Paid vacation
- Paid sick leave
- Paid holidays
- Retirement benefits
- Group health insurance (paid in full or in part)
- Continuing education (paid for upfront or reimbursed)
- Discounts on dental work for self and immediate family members —sometimes free if the employee pays any lab fees
- Participation in the practice’s bonus system
Professionals hired as W-2 employees will not have the same level of autonomy as independent contractors. They will work the hours and the days that an office is open for business. It’s important to note, though, that if a W-2 employee is hired on a part-time basis, they may work in another office to obtain full-time hours.
How To Pay an Independent Contractor vs. a W-2 Employee
There are different rules governing how to pay each type of worker. Again, it is important to consult your accountant or your tax attorney to make sure you understand the differences.
IRS Forms That an Independent Contractor Will Need To Complete
An independent contractor, or 1099 worker, will need to provide an IRS Form W-9 to the dental office upon being hired. Since most temporary dental professionals acting as independent contractors are sole proprietors, it is acceptable to use a social security number on this form. Alternatively, the independent contractor may apply for an Employer Identification Number (EIN) to use instead.
IRS Forms That an Employee Will Need To Complete
When hired, whether full- or part-time, employees must complete an IRS Form W-4 for their employer.
Independent Contractor Compensation
A dental office will pay an independent contractor an agreed-upon amount, but will not withhold any taxes, insurance premiums, etc. A dental professional working as an independent contractor will likely be responsible for making estimated quarterly tax payments. To reiterate, it is of the utmost importance that you consult with a tax professional.
According to IRS guidelines, an independent contractor should be sent a Form 1099-NEC by all dental offices they’ve worked for if they’ve earned $600 or more during the year. The 1099 should be sent out by January 31 of the following year. These forms are to be filed with your tax return.
W-2 Employee Compensation
When paying an employee, taxes will be withheld from an employee’s paycheck and the employer will pay a portion of social security, Medicare, and unemployment taxes on wages earned. At the end of the year, the employee should receive a Form W-2 indicating wages earned and all amounts withheld. A W-2 is to be submitted with an income tax return.
The Benefits of Working With Kwikly
It’s apparent that the distinction between a 1099 vs. a W-2 worker can get confusing and there are many rules and laws governing both. That’s where a dental staffing agency like Kwikly can help! We offer a 30-minute webinar that covers the latest rules from the IRS and Department of Labor regarding hiring.
Kwikly hires all of their dental staff as W-2 employees. As a dental office, you won’t have to worry about onboarding temporary employees and dealing with the headache of taxes and other withholdings, and you won’t have to keep track of multiple 1099 workers. This takes the responsibility and liability off of you.
As a Kwikly employee, you can simply do your job—not be burdened with quarterly estimated tax payments, keeping track of who needs to send you 1099s, or whether or not the payment amounts entered on the 1099s are accurate.
If you work full time with us—an average of 30+ hours per week in a month—you can enjoy benefits like:
- Medical, dental, and vision insurance
- Paid time off
- CE allowance
- A flexible schedule
If you want to build a successful career, enjoy flexibility, access the best app for temp work on your smartphone, and work for the best dental temporary agency, join Kwikly today!
