Illinois Employment Classifications

[These are articles are for information purposes only and are not intended for legal or tax advice.  They provide general information about 1099 and W-2 Employment classifications as they relate to different states.  While efforts are made to ensure accuracy and completeness, it's critical that anyone seeking advice or up-to-date information on these topics consult their own independent tax or employment lawyer.]

In Illinois, dental hygienists who are hired to a dental office team are typically classified as employees and are paid on a W-2 basis. This means that the employer is responsible for withholding federal and state income taxes, as well as Social Security and Medicare taxes, from the employee's pay. The employer is also responsible for paying a portion of these taxes.

However, if a dental hygienist is classified as an independent contractor and paid on a 1099 basis, they are responsible for paying their own taxes. They will need to file a Schedule C (Form 1040) to report their income and expenses, and they will also be responsible for paying self-employment taxes.

It is important to note that whether a worker is classified as an employee or independent contractor is determined by the nature of the work and the level of control the employer has over the worker, not by the worker's job title. Misclassifying an employee as an independent contractor can lead to penalties for the employer.

A dental hygienist in Illinois can check to ensure their employment relationship is compliant with state employment and tax laws by taking the following steps:

1. Review their employment contract: The contract should clearly outline the terms and conditions of their employment, including whether they are classified as an employee or independent contractor.

2. Check their pay stub: If they are classified as an employee, their pay stub should show that federal and state income taxes, as well as Social Security and Medicare taxes, have been withheld from their pay.

3. Check their Form W-2: If they are classified as an employee, they should receive a Form W-2 from their employer at the end of the year, which will show the total amount of their wages and taxes withheld.

4. Check their Form 1099: If they are classified as an independent contractor, they should receive a Form 1099-MISC from their employer at the end of the year, which will show the total amount of their compensation.

5. Check the Illinois Department of Employment Security: They may confirm their status on the Illinois Department of Employment Security website by searching for their employer's name or FEIN number.

6. Consult a lawyer: if they're unsure about their status, it's always better to consult a lawyer that specializes in employment law, as they can advise them on their rights and provide guidance on how to ensure compliance with state laws.

The state of Illinois has its own set of rules and regulations for worker classification that employers must follow. According to the Illinois Department of Employment Security (IDES), a worker is considered an employee if the employer has the right to control the means and manner of the worker's performance, regardless of whether the employer exercises that right. This is known as the "control test."

The IDES also considers a number of factors when determining a worker's classification, including:

1. The degree of control the employer has over the worker's performance.

2. The degree of skill required for the work.

3. Whether the work is an integral part of the employer's business.

4. The duration of the relationship between the worker and the employer.

5. The extent to which the worker's services are performed on a regular basis.

6. Whether the worker has the opportunity for profit or loss.

7. Whether the worker supplies the tools and materials necessary for the job.

8. Whether the worker hires and supervises other workers.

9. Whether the worker is in a distinct occupation or business.

It's important to note that the burden of proof is on the employer to show that a worker is properly classified as an independent contractor. If an employer is found to have misclassified an employee as an independent contractor, they may be subject to penalties and fines.

A dental hygienist or assistant in Illinois may be classified as a 1099 Independent Contractor when they are running their own business and providing services to a dental office on a contract basis.

This would typically involve the hygienist or assistant having their own business license and liability insurance, setting their own schedule, and providing their own tools and equipment. They may also be paid on a per-visit or per-project basis rather than a regular salary.

However, it's important to note that this classification should be done correctly, per the laws and regulations of Illinois, and that employers should be sure that the worker is truly an independent contractor and not an employee before classifying them as such.

A dental hygienist or assistant could be correctly classified as a 1099 independent contractor when working at a dental office for a temporary shift in Illinois if the following circumstances are met:

1. The dental office does not control how the work is performed by the hygienist or assistant. They have autonomy over their work schedule, the way they do their job, and the materials and equipment they use.

2. The hygienist or assistant is free to work for other dental offices or clients.

3. The hygienist or assistant provides their own equipment and supplies.

4. The hygienist or assistant is not entitled to employee benefits, such as health insurance or paid time off.

5. The hygienist or assistant is paid on a per-project or per-hour basis, rather than a regular salary.

6. The hygienist or assistant is responsible for paying their own taxes, and the dental office does not withhold taxes on their behalf.

It's important to note that the classification of a worker as an independent contractor is determined by the facts and circumstances of each case and not solely by how the worker is classified by the employer. The IRS and the Illinois Department of Employment Security may have different standards for determining worker classification.

If correctly classified as 1099, this means that the dental office would not be responsible for withholding taxes or providing benefits, and the hygienist would be responsible for their own taxes and benefits.

If a dental hygienist is working a one-day temporary shift at a dental office and they are providing their services as an independent contractor, then they would likely be correctly considered a 1099 independent contractor. This means that the dental office would not be responsible for withholding taxes or providing benefits, and the hygienist would be responsible for their own taxes and benefits.

Additionally, some dental hygienist may also work as a locum, meaning they work as a temporary replacement for an absent employee. In this case, they are not considered an employee of the dental office, but rather a contractor.

It's important to note that the worker's job title or the fact that they work in a dental office is not determinative of whether they are classified as an employee or an independent contractor. The key factor is the level of control the dental office has over the worker's performance and the nature of the work being performed. Misclassifying a worker can lead to penalties and fines, so it's important to be sure that the classification is done correctly.

If an employee is misclassified as an independent contractor, there can be a variety of negative consequences for both the employee and the employer. In general, the employer bears the risk if the employment is misclassified. Some of the risks that employers may face include:

• Liability for unpaid taxes: If an employee is misclassified as an independent contractor, the employer may be liable for unpaid taxes, including Social Security, Medicare, and unemployment taxes.

• Liability for unpaid benefits: Employers may be liable for benefits such as workers' compensation, unemployment compensation, and vacation pay that should have been provided to the employee but were not.

• Liability for discrimination and other employment law violations: Employers may be liable for discrimination and other employment law violations if the misclassification resulted in the employee not being protected under those laws.

• Liability for overtime and minimum wage violations: Employers may be liable for overtime and minimum wage violations if the employee is entitled to these benefits but did not receive them because of misclassification.

• Liability for penalties and fines: Employers may face penalties and fines for misclassifying employees, particularly if they do so intentionally or repeatedly.

It's worth noting that employees can also face negative consequences if they are misclassified as independent contractors, such as loss of benefits and protections, and lack of legal recourse in case of violations. Misclassification can also have negative impacts on the government, particularly if taxes and benefits aren't being paid as they should be.

Regardless of how a worker is classified, the worker can still be protected by certain state and federal laws, such as anti-discrimination laws and laws related to safety and health in the workplace. Employers should consult with legal counsel to ensure compliance with all applicable laws.

It's important to note that it's not the duration of the work that determines whether a worker is an independent contractor or an employee, but the nature of the work and the level of control the employer has over the worker's performance. Employers should carefully evaluate the relationship and the nature of the work to determine the appropriate classification.

It's also important to note that there may be other factors involved, such as agreement between the dental office and the hygienist, the hygienist's own business registration, insurance, and other factors that may affect the classification.

Side Note:  Occasionally we've heard comments and opinions that, depending on the state, being classified as a 1099 Independent Contractor might put a dental hygienist's license in jeopardy if their state licensure requires their provision of care to be performed under the direction and oversight of a licensed dentist. 

In short, the opinion goes something like this:  "If you are a 1099 Independent Contractor, then you were self-determinant in the provision of your care and not under the direction a dentist.  But your license requires you to provide care only under the direction of a licensed dentist.  So your license is now at risk."   

We at TempStars care very much about patient care, state regulations, doing the right thing and that dental care is only provided under valid circumstances by licensed professionals.  So when we heard this, we made every effort to investigate and dig into the validity of this opinion.   

Despite very extensive research and inquiry with dental professionals and dental hygiene licensing bodies, we found no evidence to support this.  The hygienist licensures indicated their priority concern was whether a licensed dental hygienist was performing their duties according to their state regulations and guidelines. 

But we as a team and organization are dedicated to supporting dental professionals and providing the resources needed for success - so if you or anyone you know has had their dental hygiene license disciplined or suspended solely due to the nature of an employment relationship being misclassified, we would very much like to know. 

Please contact our team at help@tempstars.com and we are offering a reward to any licensed U.S. dental hygienist for the details of their story and situation so that we may help further shine light on this topic and provide the best and most accurate resources and information possible.  Thank you!