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Why Classifying Health Care Staffing Employees Appropriately Is So Critical
Medical staffing firms need to get employee classifications right for several reasons, including when it comes to payroll taxes, overtime, and Workers’ Compensation insurance. According to a by the American Staffing Association (ASA), many online health care job and medical staffing platforms classify their nurses and nurse aides as independent contractors (issuing 1099s in lieu of W2 forms) as a way of lowering costs, as they don’t have to pay payroll taxes or employee benefits. However, the health care facility (end user) using the staffing firm’s services typically cannot claim staffing workers as independent contractors. It is because health care facilities exercise supervision and control over the work” performed by the staffing workers at their worksite.