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Do 1099 Independent Contractors Qualify for PSLF?

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  • #31







    Yanita, if you’re in California, you might want to see if the county should have classified you as a W-2 rather than an independent contractor in light of the state supreme court’s Dynamex decision. That said, the Assembly is working on a legislative fix for what some see as overreach by the Supreme Court requiring physicians and dentists to be W-2 employees when they might prefer to be independent contractors.
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    Exactly.

    Preference doesnt really matter does it? Its a stretch for most contractors in these situations to actually be contractors whether they prefer it or not. I’d prefer to be a contractor all else equal so I could personalize my benefits, but I think the foundation is pretty clear and makes perfect sense legally.

     

    Institutions dont contract people out of some altruistic or headache avoidance issue, it is solely to dodge expensive taxes and liabilities (workers comp, paid family leave, etc…). So, you are certainly not making more, you’re getting less and the institution is paying less overall. You should make significantly more as an IC to account for this, but not usually how it works.
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    “ Of course we have all been on rocky ground with this PSLF, but I was trying to do due diligence… and still failed. Thanks again for having this forum/resources available.”

    I really hope you are successful. As many government programs, the noble intent gets lost in the words and interpretation and we end up paying for an army of bureaucrats with no benefits given or abuse of the intent.

    Good luck.
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    Thanks Tim. I have learned that the word "employee" is not as simple - or clear - as it would seem... and variably defined in variable circumstances.
    And Hank, be careful what you prefer.... being an IC is not a small headache. it is more a means to an end, if its what's required to get the job you love......

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    • #32







      Thanks, and thanks for the recommendation for Adam Minsky. Will reach out… At least I do love my job. And appreciate your help here. If I find any definitive news out, for better or worse, will make sure to post.
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      You’re welcome, and please circle back with updates or additional questions. As you know, the forum is happy to help!
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      Hello!

      More help?? Adam Minsky was great and swift to respond, but unfortunately is not licensed to work in CA. Do you have any other recommendations? If not, for anyone else here, this is what i've got:  You can find a consumer rights attorney in your state through the National Association of Consumer Advocates; they have a directory on their website, https://www.consumeradvocates.org/. You can also contact your state bar association for a referral. There is also free student loan information available at https://www.studentloanborrowerassistance.org/ and http://askheatherjarvis.com/.

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      • #33
        Did you ask Adam if he has any good referrals or contacts in CA?

        I feel like the recent case for the American Bar Association (ABA) and the American Immigration Lawyers Association (AILA) could help you moving forward. I know there is A LOT of gray area when working as an IC but certainly worth a shot. Plus, this court case and a few others should have attorneys in the student loan space feeling good.

        Here is the story from Adam in Forbes: Major Court Decision Boosts Public Service Loan Forgiveness

        I looked up a few attorneys in CA but their specialty was private loans. I would trust the opinion of Adam's recommendation over Google anyway.

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        • #34
          Lots of interesting info here re: W2 vs 1099, but what I’m not seeing is advice to check out the criteria for employee classification. Misclassification is a serious and common problem. You may be improperly receiving a 1099 when you are really an employee. The US Department of Labor has fact sheets for the Fair Labor Standards Act (FLSA) that go over the criteria, and the IRS also has info available. If you don’t properly meet the criteria for an independent contractor, it’s worth it to pick the battle.

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          • #35
            Any updates?

             

            I am in a similar situation in AZ - 1099 IC with a 3 year contract

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            • #36
              I'm curious if there has been any further movement on these issues. I recently was asked to submit W2 to verify work that was previously certified for the last 3 years.

              Would love any guidance

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              • #37
                Originally posted by mlangster View Post
                I'm curious if there has been any further movement on these issues. I recently was asked to submit W2 to verify work that was previously certified for the last 3 years.

                Would love any guidance
                Agreed!!!

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                • #38
                  There has been no movement as far as I'm aware. The toolkit with the language of W-2 employee is the last I've seen.

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                  • #41
                    I don't know the ins and outs of TX and CA law, but if hospitals are prohibited from directly employing doc, i suspect they are ICs paid on a 1099 and thus excluded from PSLF. In theory I guess they are saying that if you an IC at a non-profit in these two states, if a bill gets passed, those docs would become eligible.

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                    • #42
                      Originally posted by East coast View Post
                      I don't know the ins and outs of TX and CA law, but if hospitals are prohibited from directly employing doc, i suspect they are ICs paid on a 1099 and thus excluded from PSLF. In theory I guess they are saying that if you an IC at a non-profit in these two states, if a bill gets passed, those docs would become eligible.
                      Possibly, and a thought I also had, but that is putting a lot of supposition into what the bill is supposed to accomplish.
                      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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                      • #43
                        Correct, we'll see, but here's the specific language from the proposal:

                        "SEC. 2. AMENDMENTS TO TERMS AND CONDITIONS OF PUBLIC SERVICE LOAN FORGIVENESS.

                        Section 455(m)(3) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)(3)) is amended by adding at the end the following:



                        “(C) FULL-TIME PROFESSIONALS ENGAGED IN HEALTH CARE PRACTITIONER OCCUPATIONS.—The term ‘full-time professionals engaged in health care practitioner occupations’ includes an individual who—

                        “(i) has a full-time job as a health care practitioner;


                        “(ii) provides medical services in such full-time job at a nonprofit hospital or public hospital or other nonprofit or public health care facility; and



                        “(iii) is prohibited from being employed directly by such hospital or other health care facility by State law.”."

                        https://www.congress.gov/bill/116th-...bill/3746/text

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                        • #44
                          Originally posted by East coast View Post
                          I don't know the ins and outs of TX and CA law, but if hospitals are prohibited from directly employing doc, i suspect they are ICs paid on a 1099 and thus excluded from PSLF. In theory I guess they are saying that if you an IC at a non-profit in these two states, if a bill gets passed, those docs would become eligible.
                          I doubt anyone has a complete handle. In Texas,
                          Hospital contracts with :
                          physicians groups to provide coverage.
                          multiple groups or individuals.
                          UT Health Science
                          Baylor
                          Probably the County , not the hospital
                          Each of those has a nonprofit ID, just different than the hospital. Benefits in separate entities as well. One is state, the other private university and the other County benefits plans. Your medical practice is hospital specific credentials regardless. You don’t credential with a system. Minor, if you need to add another hospital within the system.

                          Each physicians employer can classify as W-2 or IC. This may benefit physicians groups or practices that contract with community hospitals or that are independent or the nonprofit setups.
                          Thinking HCA employed physicians might end up qualifying. I didn’t read this as addressing the IC / W-2 issue.

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                          • #45

                            East coast Exactly as you stated above. California hospitals (and it seems Texas) cannot directly employ docs due to a technicality in state law so many of us California docs are 1099s. We would meet the amended inclusion criteria in the bill, ie, 'is prohibited from being employed directly by such hospital or other health care facility by State law.' This would render us eligible for PSLF. Seems there are a few 1099 Cali docs in this thread who would benefit from this being passed.

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