I'm a member of a large anesthesiology group.
The income structure is identical for all members of the group. We bill in time based units on anesthesia services we deliver to the patient.
Many in the group have assumed additional, uncompensated, roles. We have a board of directors who manages the business side of things (I'm a board member). We have others who spend hours each week on unpaid tasks such as running the group website. Nobody gets paid for this and nobody wants to pay someone else to do this.
We can currently expense items related to our work and take this out of our own billings on a pre-tax basis. If I buy books or attend a meeting, I fill out an expense report and get that money reimbursed to me pre-tax
My question is can we pay ourselves for uncompensated non-anesthesia work and shift some income from our W2 to a 1099? More flexibility in deducting things on the Sched C and we already pay our own employers portion of income tax so the self employment tax is a wash
2006-11-03 03:47:03 · 7 answers · asked by anesthesiologist 1 in Business & Finance ➔ Small Business
This sounds like a good question to discuss with an accountant. A lot will depend on the specifics...
2006-11-03 03:57:22 · answer #1 · answered by NC 7 · 0⤊ 0⤋
No. It would be a "red flag" to the IRS if you got a W-2 and a 1099 from the same employer. A 1099 relates to an Independent contractor, clearly you and your colleagues are not, in fact you are a principal of the business, since you sit on the Board.
Those employees who are working on an uncompensated basis may be putting the business in jeopardy for violating the Fair Labor Standards Act if they are non-exempt employees, not professionals. If they are professionals, they are "volunteering" time and effort.
I would recommend against dual reporting of income, stay with the W-2.
2006-11-03 14:30:00 · answer #2 · answered by PALADIN 4 · 0⤊ 0⤋
that's unlawful to furnish a 1099 to an worker, era. that's not unlawful because of the fact the corporation additionally gave a W-2 for the comparable activity. that's against the regulation because of the fact a 1099 can in easy terms take transport of to an "self reliant contractor", to no longer an worker.
2016-12-09 01:54:37 · answer #3 · answered by ? 4 · 0⤊ 0⤋
The only way it would work would be for your employer to issue you a 1099 with a different job title for the uncompensated non-anesthesia work. Check the IRS web site (www.irs.gov) for more details.
2006-11-03 03:56:28 · answer #4 · answered by Jazz In 10-Forward 4 · 0⤊ 0⤋
The IRS is looking specifically for what you propose. They are very active in wanting to collect FICA, Medicare, and payroll taxes. If you get compensated in a way that avoids those, you can expect an audit with penalties.
2006-11-03 07:56:09 · answer #5 · answered by united9198 7 · 0⤊ 0⤋
That depends on how your group is structured. If INC or LLC then no. If partnersip then yes you can
2006-11-03 03:56:18 · answer #6 · answered by golferwhoworks 7 · 0⤊ 0⤋
erwtertr?
2006-11-03 03:49:19 · answer #7 · answered by bcrekmore 3 · 0⤊ 0⤋