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Work as 1099 doctor in NJ possible? (Same specialty.)

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  • Work as 1099 doctor in NJ possible? (Same specialty.)

    Hello everyone. First time poster but I have browsed around before. I am hoping to get some direction on a job with another doctor. Long post ahead. Sorry. But thank you to anyone who can chime in!

    I am new to New Jersey (not thrilled but kinda need to be here for at least a few years). I am a Podiatrist for a few years now, already licensed in NJ but was working in another state until very recently. I am evaluating a job offer with another Podiatrist. And I am getting stuck.

    My prior work was my own office so fully legitimately 1099. I am not interested in opening my own practice in NJ since I really hope I will leave within 5-8 years. A good friend who has his own podiatry practice put me in contact with his healthcare attorney, but that attorney is on vacation for another 2 weeks. I have never had an accountant, I have always done my own accounting & taxes.

    The job offer would pay me as an independent contractor (1099). Which I prefer so I can contribute to my retirement accounts & deduct my work expenses. The “other Podiatrist” also prefers to pay me as a 1099. However my friend’s attorney briefly mentioned that this would not pass the “ABC” test in NJ. I did read up on it:

    https://www.nj.gov/labor/ea/audit/in...-vs-employees/

    I guess maybe “B” I would fail & thus be a W2 employee. The attorney said once he returns we can discuss more. But I am itching to learn more up to that point.

    The job offer would not prohibit me from working for anyone else, I can do any other type of work I want. But the other Podiatrist said she has work up to 6 days per week for me, as much as I desire. But I can set my own hours, I will tell her what days & hours I want to work. She requested I bring my own “instruments”, but she would provide supplies & pay staff/utilities. I do not have to pay any office expenses. I will credential myself as a new doctor under her group practice. Her office will submit claims/charges to the insurances. I will get a percentage split of what her office collects from the services I render. The portion she keeps covers my expenses. No other benefits (no health insurance, no paid time off, no vacation, no sick pay, etc…). I would not pay her rent. I would be her only sub-doctor. And honestly I wouldn’t work for someone else at first until at least I get settled. And hopefully never work for someone else if things are going well. She will continue to work, she is not retiring. I pay all my own malpractice insurance, licenses, CDS, DEA, CMEs, & other expenses. I do not acquire or amass any ownership or share in her practice.

    Anyone have an idea if I can pass as a 1099? If not, are there any modifications that would push me to 1099 status? I mean I could pay her rent & we adjust the percentage split. I could contribute to expenses if that helps.

    And the attorney mentioned not to get entangled with self referrals & kickback & stark laws. I have heard of those before but I am not knowledgeable about them. But the sliver of reading I did… should her & I change from a percentage to a flat fee per patient?

    Thanks in advance to anyone who can shed some light!

  • #2
    The reference you made was for NJ unemployment benefits.
    https://www.irs.gov/businesses/small...ed-or-employee
    I would start with the federal guidelines first. Those are most important from your perspective.
    Not qualified to advise you for sure.
    It seems like you could meet the ABC tests but have no need to do it. That might be an avenue.

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    • #3
      Without reading the link (because you can always find arguments on both sides of this issue), I would not have an issue with recommending you go with 1099, if you were my client, which you aren’t so this is general advice only.

      Can’t imagine you are not unwittingly over your head on the tax issues as a full-time 1099, what advantage are you hoping to gain?
      Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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      • #4
        Thanks both for the replies. I think the issue is NJ had a stricter test to not be an employee. It reads as is you are employee be default & need to prove you are not.

        I want to be able control what deductions I can write off. And contribute to a solo 401k. And take a health insurance deduction. And mileage deduction between the office & hospital. And more. I was when I was running my own small practice.

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