Employees vs. independent contractors: What’s the difference?

A question young dentists may face as they look for jobs is whether they will be an employee or independent contractor. What does that mean?

Employees must operate within the framework set up by their employer, who has the right to control how duties are performed. In exchange, they generally receive more support from their employer and are eligible for more benefits.

Independent contractors, on the other hand, have more control over their work and schedule but more financial responsibilities, including preparing and submitting their own payroll and income taxes.

Generally, the employer decides if a dentist is an employee or independent contractor and spells out the terms in a written contract. It is a good idea to consult an attorney when reviewing a proposed contract to make sure the terms are clear to avoid any legal and financial problems down the road. All businesses must follow federal regulations that govern employment status.

Above are common differences between employees and independent contractors. However, either position could be subject to contract obligations that differ from the information listed above.