Axxess Care connects home health organizations with qualified clinicians to fill staffing gaps and provide timely care. In most cases, clinicians providing coverage for organizations in need are considered independent contractors rather than employees, shares Shelley Bailey, RN, BSN, Senior Product Manager at Axxess. She details the tax documents and potential tax deductions that organizations and clinicians should be aware of when working as independent contractors.
W-9 Forms
Since clinicians using Axxess Care are considered independent contractors and not employees, they do not have taxes withheld from their total earnings. When a clinician signs up for Axxess Care, they are provided with a W-9 form to complete.
“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,” Bailey notes.
The form is also necessary for the organization to accurately report any income paid to clinicians.
When an organization assigns a visit to a clinician, funds are held from the organization through a third-party vendor and then released to the clinician when the visit has been completed. The organization is also responsible for paying the transaction fee associated with each visit. Payments are made directly by the organizations to the clinicians, with Axxess Care acting solely as a facilitator.
1099-NEC Forms
Organizations are also responsible for providing clinicians with a 1099-NEC form for all completed visits. Clinicians must be provided with this form to complete their taxes. For organizations looking to streamline operations, Axxess Care populates a 1099-NEC from completed and paid visit earnings for each clinician.
The 1099-NEC is provided to all clinicians who have completed a visit on Axxess Care, regardless of the amount of money earned.
If the organization chooses not to use the Axxess Care generated 1099-NEC, they must provide one to the clinicians themselves. It’s important to remember that clinicians are required to report income over $600 to the Internal Revenue Service (IRS). Clinicians should expect a 1099-NEC from each organization that paid out more than $600 during the year.
Organizations can edit the 1099-NEC and include any additional payments, Bailey notes. For example, if any visits were completed and paid outside of Axxess Care, using a check or alternative payment type, this amount can be added to the 1099-NEC and then approved by the organization.
Once the 1099-NEC has been approved, the clinician can access the form within Axxess Care. If a clinician does not receive a 1099-NEC from an organization, they can report their income using Form 1040 from the IRS. Clinicians in need can also contact the IRS directly and staff members can request the missing form on their behalf.
Bailey notes that clinicians who’ve earned $20,000 or more on Axxess Care may also receive a 1099-K form. This is an information form that summarizes the sales activity of the account and is designed to assist clinicians in reporting their taxes.
Tax Deductions
Bailey encourages both clinicians and organizations to seek out a tax professional about their tax liabilities and any potential deductions. For clinicians specifically, a certified tax professional can help them write-off any expenses made while using Axxess Care.
“As independent contractors, clinicians using Axxess Care may be able to make some tax deductions for their expenses,” Bailey highlights. “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.”
Axxess Care, a powerful scheduling and staffing solution, connects organizations with qualified clinicians to ensure patients get the care they need and deserve.