Independent Contractors Working in Your Chiropractic Clinic

Do you have an open spot within your chiropractic clinic that you are considering renting out to an independent chiropractor, rather than hiring someone to your staff? Would that independent contractor truly be independent if they were using the resources and space within your clinic? Dealing with independent contractors can be a complex process and should not be one that is taken lightly. Todd Crabtree and staff are here to help you through this decision, every step of the way.

Tax Implications

By renting a room within your chiropractic clinic to an independent contractor, you do have some amount of power over them. This power can end up hurting you down the road. If the independent contractor failed to pay their taxes tied to the services rendered under your roof, the IRS may end up knocking on your door informing you that you are responsible for the unpaid taxes by the independent contractor.

Difficulties of an Independent Contractor Agreement

The independent contractor agreement becomes very important in situations where they are renting space within your clinic. Clear details indicating that you do not have power over these individual contractors is a must. Consider implementing a rental agreement for fair market value that exceeds one year. What you charge for their rent cannot have any direct correlation to the number of clients that they bring into your clinic. The rent should only be based on the fair market value of the rental space itself. Getting advice from a realtor is a great idea before finalizing this independent contractor agreement. Todd Crabtree and our staff have seen too many chiropractors get burned because of the contractor agreement that they signed, which is why we take these agreements incredibly seriously.

The Simpler Solution

Rather than bringing in an independent contractor to rent a space within your chiropractic clinic, hiring them on staff is the much cleaner option. Having them on staff limits the tax risks that independent contractors can cause. There doesn’t have to be a separate agreement in place as well.

When it comes to guidance around independent contractors working in your chiropractic clinic, Todd Crabtree and our staff advise you to shy away from these types of situations. The more logical and less risky option is to just hire them for your clinic. If you have additional questions around this topic or want to learn more, give our team a call today at (651) 351-2899.

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