1099 Dental Temps: Is It Legal? Understanding Independent Contractor Classification

The question of whether dental temps can legally be classified as 1099 independent contractors comes up frequently. The short answer: yes, it can be legal when done correctly.

1099 Classification Is Not Automatically Illegal

There is a common misconception that hiring dental hygienists or dental assistants as 1099 contractors is always illegal. This is not accurate. The legality depends on whether the working relationship genuinely meets the criteria for independent contractor status under IRS guidelines and state law.

Many dental staffing platforms operate legally by structuring their relationships to meet independent contractor requirements. The key is whether the arrangement reflects a true independent contractor relationship rather than an employer trying to avoid payroll taxes and benefits.

When 1099 Classification Works for Dental Temps

Independent contractor status is typically appropriate when:

• The professional controls how they work: They use their own clinical judgment and are not closely supervised on technique.
• They work for multiple clients: Dental temps who work at various practices demonstrate business independence.
• They set their own schedule: They choose which shifts to accept or decline.
• They can profit or lose: Their income depends on the shifts they choose to work.
• They provide some of their own tools: Such as loupes, instruments, or scrubs.
• The relationship is temporary: They fill in for specific shifts rather than working an ongoing regular schedule.

When 1099 Classification Is Problematic

Misclassification concerns arise when:

• The worker has a regular, ongoing schedule at one location
• The practice controls when, where, and how they work
• They cannot work for other practices
• They receive training from the practice
• The practice provides all equipment and supplies
• The relationship looks like employment in everything but name

State-by-State Considerations

Some states have stricter rules than federal guidelines:

• California (AB5): Uses the ABC test, which is more restrictive. However, licensed professionals like dental hygienists may qualify for exemptions under certain conditions.
• Massachusetts: Has strict independent contractor laws similar to California.
• New Jersey: Recently tightened enforcement on worker misclassification.
• Most other states: Generally follow IRS guidelines or have less restrictive tests.

How Dental Staffing Platforms Handle This

Most dental temp apps and agencies structure their platforms to support legitimate independent contractor relationships:

• Professionals choose their own shifts
• They can work with multiple practices through the platform
• They negotiate or accept posted rates
• They maintain their own licenses and credentials
• The platform acts as a marketplace, not an employer

For Dental Professionals

If you work as a 1099 dental temp, you are responsible for:

• Self-employment taxes: You pay both the employer and employee portions of Social Security and Medicare (15.3% total).
• Quarterly estimated taxes: You should make quarterly tax payments to avoid penalties.
• Your own benefits: Health insurance, retirement savings, and disability coverage are your responsibility.
• Business expenses: You can deduct legitimate business expenses like continuing education, supplies, and mileage.

For Dental Practices

When using temp staffing platforms or hiring independent contractors:

• Use established platforms that structure relationships appropriately
• Do not treat temps like employees (setting schedules, requiring attendance)
• Understand that true temps should work occasional shifts, not regular schedules
• Keep documentation of the independent nature of the relationship
• Consult with your accountant about proper reporting requirements