Relief Doctors Should Be Well Equipped
A continuing problem for veterinary relief practice is the ambiguous employment relationship created between a veterinary hospital with its relief doctors. Failure to clarify this relationship by following state and federal guidelines may expose a veterinary hospital to a tax liability for penalties and interest on payroll taxes and other employee benefits.
According to state and federal guidelines, a doctor employed by a hospital utilizes the hospital's equipment and supplies to provide veterinary services. A relief doctor is hired by a hospital and should furnish his/her equipment and supplies. In the early 1990's an independent law firm specializing in employment issues considered this situation, and in their opinion determined that ownership of the equipment and supplies is a crucial factor used to determine employment status. The law firm's recommendation is that a lease arrangement be structured between a hospital and its relief doctors to help clarify their relationship. Earlier this year tax auditors from a state's Worker's Compensation Fund and Employment Development Department participated in a session of questions and answers with relief doctors. When queried, these tax auditors agreed with the law firm's recommendation which is: a lease arrangement is a satisfactory vehicle for complying with the equipment ownership guideline, provided that the amount paid to the hospital is not frivolous.
If it ever comes to an interrogation by an auditor, a relief doctor must be very careful in expressing him or herself. Anything he or she utters may be compared to regulatory guidelines and the employment relationship may be determined upon this basis. The auditor's official conclusion may even challenge the primary issue of the employment relationship, which is control. The crucial issue is "who controls the manner and means by which a relief doctor renders his/her diagnostic, therapeutic and surgical services as well as public consultations". Relief doctors are usually reclassified as employees of the hospital and consequently, it is imperative that the hospital and its relief doctors be both knowledgeable and in compliance with the guidelines. Additionally, it is important to substantiate with written documents the terms of hire between a hospital and its relief doctors.
Both the hospital and its relief doctors can maximize the benefits available to each other by thoughtfully structuring their relationship. With careful planning they will minimize the potential problems which could arise when either federal or state agencies question the employment status of a relief doctor.
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