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Do 1099 Independent Contractors Qualify for PSLF?

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  • kbarnes
    replied

    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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  • Tim
    replied
    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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  • East coast
    replied
    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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  • jfoxcpacfp
    replied
    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.

    Leave a comment:


  • East coast
    replied
    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.

    Leave a comment:


  • jfoxcpacfp
    replied
    I cannot discern how this relates to the OP’s question.

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  • kbarnes
    replied

    U.S. Senators Dianne Feinstein, John Cornyn and Representative Josh Harder Bill Makes California, Texas Doctors Eligible for Student Loan Forgiveness

    https://goldrushcam.com/sierrasuntimes/index.php/news/local-news/28119-u-s-senators-dianne-feinstein-john-cornyn-and-representative-josh-harder-bill-makes-california-texas-doctors-eligible-for-student-loan-forgiveness?fbclid=IwAR2J8wpPztPwdJ_rRbqqAa6rqsne6 j5GA8xtiLu78lw4mNc2radOV2YK5ro#.YCszaUuIMX0.facebo ok


    Let's hope this gets passed!

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  • remapthesoul
    replied
    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.

    Leave a comment:


  • huntdoctor11
    replied
    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!!!

    Leave a comment:


  • kbarnes
    commented on 's reply
    Hey Yanita, I am in the same exact situation. I'm a 1099 at a 501c3 hospital. Small hospitals in Cali do not 'employ' physicians because it isn't allowed by state law. All of the docs in my hospital are 1099. I've been told countless times by FedLoans that my employment is certified and even submit my tax returns to them every year! Nobody has ever said I don't qualify because I'm a 1099. I didn't know any of this until I stumbled across this forum and am freaking out! I only have 10 months to go before before I've made 120 payments .

  • mlangster
    replied
    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

    Leave a comment:


  • AZspine
    replied
    Any updates?

     

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

    Leave a comment:


  • CConway1982
    replied
    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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  • ChadCFP
    replied
    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.

    Leave a comment:


  • yanita
    replied







    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.
    Click to expand…


    You’re welcome, and please circle back with updates or additional questions. As you know, the forum is happy to help!
    Click to expand...


    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/.

    Leave a comment:

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