Question

In: Accounting

Dr. Grant Wail, and ER doctor, just told you he received an offer to work at...

  1. Dr. Grant Wail, and ER doctor, just told you he received an offer to work at a local hospital’s ER department. He is required to work 8 shifts per month. Each shift is 10 hours. All medical equipment and supplies are supplied by the hospital. He gets paid by the hospital $200/per hour regardless of how many patients he sees. For all patients assigned to Dr. Wail, he has complete autonomy to exercise his professional medical judgement over patient care without influence of hospital administration. Dr. Wail is provided his schedule of shift days and times a month in advance. For instance, for the month of November, he is advised of his 8 shifts on Oct 1. I the event that Dr. Wail needs to move a shift he must arrange with other ER doctors.

REQUIRED: Please advise Dr. Wail if he is an employee or independent contractor

Solutions

Expert Solution

Dr.Wail is an independent contractor.

To determine whether a person is an employee or an independent contractor, the company weighs factors to identify the degree of control it has in the relationship with the person.

  • Does the company control or have the right to control what the worker does and how the worker does the job? Answer-No, because Dr.Wail has complete autonomy to exercise his professional medical judgement.So he is independent.
  • Is there a written contract or employee benefits such as a pension plan, insurance, or vacation pay? Answer- no

Independent contractors are their own business entity, a client cannot determine their work hours. They alone are responsible for fulfilling the work agreement—when they work and the hours they keep is completely up to them.

Independents may have their own employees, subcontractors, or partner consultants who help them to complete work tasks. They may engage other person to work in their absence.

Here, Dr.Wail arranges other ER Doctors when he moves a shift.

Therefore it can be said that he is an independent contractor.

​​​​


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