Home health organizations across the country are continuing to face staffing challenges, even as more people are seeking home-based care. Organizations using Axxess can leverage Axxess CARE, a staffing solution that connects home health organizations with qualified clinicians to provide timely care. Home health clinicians picking up visits for other organizations with staffing needs would, in most states, be considered independent contractors and can make some tax deductions.
Defining an Independent Contractor
Many states use the ABC test to determine if someone is an independent contractor:
A. The individual performing the service is free from control or direction over the performance of the service.
- Clinicians using Axxess CARE set their own working hours by scheduling time that works for them and the patient. They agree to follow the home health organization’s policies and procedures but are trained to read and interpret those procedures and orders and then perform under their license.
B. The service takes place offsite and is outside the usual course of business for the company.
- If a home health organization is unable to provide care to all the patients that need it, or their staff does not have the proper training for the specific visit, then the visit covered by another clinician through Axxess CARE would be outside the usual course of business.
C. The individual is engaged in an independently established trade, occupation, profession or business.
- Clinicians have a professional license, which indicates they have an established profession and can perform the services of that profession independently.
Each state has their own contractor designation rules, but most follow these general principles with only slight differences. Each organization should look at the labor laws related to independent contractors for their state.
Tax Considerations
Clinicians and organizations using Axxess CARE should consult a tax professional about their liability and any deductions. Some forms are incorporated in the Axxess CARE solution for ease of use.
The W-9 supplies the clinician’s correct taxpayer identification number to the organization. Once the clinician completes and signs the W-9, it is provided to the home health organization. Every organization needs the W-9 to file required paperwork with the Internal Revenue Service (IRS) to report income they pay out.
The 1099-NEC is provided to all clinicians who have completed a visit on Axxess CARE, regardless of the amount of money earned. The 1099 is populated with the earnings information in Axxess CARE, but the home health organization can edit the document to include any other payments and then approve it.
As independent contractors, clinicians using Axxess CARE may be able to make some tax deductions for their expenses. This may include their home office, legal and accounting services, insurance, travel expenses, internet and cell phone, as well as other supplies and equipment. A tax professional can help clinicians figure out their options.
Clinicians that cover needed visits and home health organizations can reap financial benefits from the arrangement, while ensuring all patients receive the care they need.
Axxess CARE, an online staffing and scheduling platform and mobile app, connects home health organizations with qualified clinicians to deliver timely care.