I am an independent contractor in a DC office with a 40/60 arrangement. The Dr. currently takes 100% of the co-pay if the patient/client sees both of us and 40% of the co-pay if the client sees only me on a visit. Is this a fair arrangement? I'm thinking that the co-pay should be split 50/50 on the visit that both therapies are done and then my portion would be split with the 40/60% for him to get the 40% of my income portion.
The other question I have is about independent contractor status. The line seems pretty fuzzy per IRS guidelines with independent vs employee. The DC currently pays me weekly, we file all insurance under his NPI # and the 60% is paid when the insurance comes in through his account. I'm thinking to distinguish the independent status, I should be filing my services under my own NPI # and writing HIM a check weekly for his 40% cut. Any thoughts or advice on this? With this arrangement, I could also take other Dr. referrals and not have to split the 40%. I'm wondering if my percentage split could be illegal and considered fee-splitting for compensation for his referrals. I make over 50% of my income from his referrals, which is one guideline the IRS uses to determine independent/employee status...
I'm looking to get out of the chiro office and this seems like a good way to transition, continue to take insurance and keep the money I work for. I'm also considering a mobile massage business that will take insurance for those clients who have a difficult time getting out for treatment. Anyone doing this successfully or have any advise?
Janice Paige Honeycutt
Thank you for your reply Jacqueline! He doesn't pay my taxes, I do, so that part is as it should be for Independent contractor. I do wonder if the percentage he takes could be considered a compensation for his referrals, or is it just compensation for rental of space in his office. It changes weekly, of course, depending on the amount of business and insurance compensation that comes through. How do other independent cont. in chiro. offices do business with Dr. referrals from just one Dr. and with rental agreements? I( can't seem to find this info. anywhere specifically. Thank you again for your advice.
Sep 12, 2012
Michelle Reisinger
It is illegal to split fees. There cannot be any percentage split at all. Please research fee splitting and kick back laws. Both state and federal laws exist. Good luck
Apr 1, 2013
Angela Williams
The Independent Contractor area is very common misconception.
The following will help: https://www.hrthatworks.com/hiringics.pdf,
May 21, 2013