Doing Locums work on the side, Do I need to tell my fulltime job?

[I Find This Humerus]

I am going to do some locums work on the side for a practice outside the range of the non-compete clause in my contract. Do I need to tell my full-time employed position hospital job or ask for their permission?

 

I'd rather they don't know so people don't get jealous I'm making extra money/think I don't care about the job anymore.

 

 

[I Find This Humerus]

Also as an aside, is it better to be a 1099 employee or ask if the locums job can pay me through an LLC I create? What's the best way financially to get paid for the side gig?

[Peds]

Only if it's in their contract for them to know.
LLC does not change payment. You can be paid 1099 either way.

[G]

Peds wrote:

Only if it’s in their contract for them to know.
LLC does not change payment. You can be paid 1099 either way.

Click to expand...

Agree with Peds--the answer is in the employment contract that you signed.

[ENT Doc]

Yeah, completely agree with above.  I'd give that contract a hard look prior to agreeing to do locums work.

[jfoxcpacfp]

No need for you to form an LLC for your locums work. Make sure that you are covered by malpractice for the extra work, of course, as your primary coverage (most likely) will exclude the locums. You can get an EIN as a sole proprietor and provide that to the locums provider if you'd rather not give them your SSN (which is what I recommend).

[I Find This Humerus]

Peds wrote:

Only if it’s in their contract for them to know.
LLC does not change payment. You can be paid 1099 either way.

Click to expand...

If there is nothing in the contract either way then it's none of their business correct?

[I Find This Humerus]

jfoxcpacfp wrote:

No need for you to form an LLC for your locums work. Make sure that you are covered by malpractice for the extra work, of course, as your primary coverage (most likely) will exclude the locums. You can get an EIN as a sole proprietor and provide that to the locums provider if you’d rather not give them your SSN (which is what I recommend).

Click to expand...

Why? What difference does that make? Total newbie here.

 

I was trying to figure the best way to reduce taxes.

[jfoxcpacfp]

I Find This Humerus wrote:

jfoxcpacfp wrote:

No need for you to form an LLC for your locums work. Make sure that you are covered by malpractice for the extra work, of course, as your primary coverage (most likely) will exclude the locums. You can get an EIN as a sole proprietor and provide that to the locums provider if you’d rather not give them your SSN (which is what I recommend).

Click to expand…

Why? What difference does that make? Total newbie here.

I was trying to figure the best way to reduce taxes.

Click to expand...

Sorry, this has no impact on your taxes. Business reporting for a sole proprietor can be done either under your SSN or under an EIN (Employer Identification Number). You don't have to be an employer to have one, but it's like a SSN for businesses. Using an EIN just keeps your private SSN - private. EINs are pretty much public knowledge so ID theft is not a consideration. Hope that helps.

[ENT Doc]

I Find This Humerus wrote:

Peds wrote:

Only if it’s in their contract for them to know.
LLC does not change payment. You can be paid 1099 either way.

Click to expand…

If there is nothing in the contract either way then it’s none of their business correct?

Click to expand...

I would imagine.  If nothing in my contract stated that my clinical focus had to be to the employer alone, or that they would need to approve outside work, then I'd go for it.  If you're really concerned may want to consult in-house legal counsel at the hospital.  Should be pretty black and white.

[I Find This Humerus]

jfoxcpacfp wrote:

I Find This Humerus wrote:

jfoxcpacfp wrote:

No need for you to form an LLC for your locums work. Make sure that you are covered by malpractice for the extra work, of course, as your primary coverage (most likely) will exclude the locums. You can get an EIN as a sole proprietor and provide that to the locums provider if you’d rather not give them your SSN (which is what I recommend).

Click to expand…

Why? What difference does that make? Total newbie here.

I was trying to figure the best way to reduce taxes.

Click to expand…

Sorry, this has no impact on your taxes. Business reporting for a sole proprietor can be done either under your SSN or under an EIN (Employer Identification Number). You don’t have to be an employer to have one, but it’s like a SSN for businesses. Using an EIN just keeps your private SSN – private. EINs are pretty much public knowledge so ID theft is not consideration. Hope that helps.

Click to expand...

oh ok ty

[pulmdoc]

My contract (with a big health system) explicitly states that I have to get written approval before taking a job "substantially similar" to my position (ie being a physician). When I asked the lawyers about this prior to signing, they stated this was to protect the employer from unintentional Stark liability as well as to pre-emptively identify conflicts of interest. That said, several of my partners have 1099 income being physicians that have been approved. My advice is to re-read your contract carefully and follow what it says.