SEPTEMBER JUNE, 2008 2009
VOLUME 10, ISSUE 9 VOLUME 9, ISSUE 6
AVAILABLEONLINE ONLINEAT ATTDA.ORG TDA.ORG AVAILABLE
Employee vs. Contract Labor Every Member Matters
Knowing Employment Differences Clarifies Business Reporting Responsibilities
Rise’ Lyman, DDS, TDA Future Focus Committee
Membership growth is vital to any thriving organization. The Texas Dental Association (TDA) Board is strongly committed to the Membership goal within the “TDA 2009” strategic plan, which addresses continued growth. I am proud to report that, as evidence of that commitment and for the second year in a row, the TDA received the following ADA awards in 2008: • Greatest Percentage Membership Net Gain: Texas had a net gain of 198 members in the year 2007. • Top Constituent Dental Greatest of Non-Members Membership: Over the last few weeks the TDA central office hasSociety receivedwith a number of Percentage phone calls from members whotohave employed temporary Represents a conversion of 4.7 percent of non-members into membership at end of year 2007. dental hygienists in their practice. The questions focus upon whether the temporary dental hygienist is considered a contract • Top Constituent Dental Society to Improve Retention Rate Percentage in 2007: Represents a 97 employee by the Texas Workforce Commission (TWC). As you may know, TWC is the state agency governing employment practices percent Association retention rate, which is an increase of 7 percent from the previous year. in Texas and provides numerous employeesofand employers labor • services Greatestfor Percentage New Dentistincluding Members:information Represents on a gain of law. 111 new dentist members (those dentists who are 1-9 years out of school). The article below is reprinted with the TWC’s permission previously published in the spring 2007 issue ofbuilds the TWC’s Solutions Another example of the commitment to the growth ofand ourwas Association is the TDA Externship Program, which student awareness newsletter. of organized dentistry. This innovative program, created in 2007, offers students the opportunity to gain insight into the different components of organized dentistry including legislative and regulatory affairs, membership, governance, continuing education, and charitable dentistry and to gain a better understanding of their roleused as future leadersinofbusiness the dental programconcern is openfor to Texas dentalemployers students from each of the three “Contract labor” may be the most widely misnomer andteam. posesThe a growing — tax penalties that can dental schools in Texas. This year the externship program will take place June 20 – June 27 in Austin at the TDA central office. be avoided. As an ongoing effort to enhance the value and benefits of the Association, the TDA Council on Membership developed a survey that was sent to all members in 2006. The results clearly showed that members have a high satisfaction rating with benefits such as the TEXAS Meeting, TDA One of the most frequently asked questions of the Texas Workforce Commission’s Office Representing Employers regards the definition of publications, and the ability to participate philanthropically in the TDA Smiles Foundation. A great number of the discounted programs offered to contract labor. Although Texas Unemployment Actrating. does not directly define contractor,” it does set forth a members through the TDAthe Perks Program also receivedCompensation a high satisfaction In accordance with “independent the strategic plan, the Council on Membership, broadly inclusive test, the “direction or control” or “common law” test. will survey members again in 2009. Participation from all members and a collaborative effort between the ADA, TDA, and local component societies are the keys to successful recruitment and retention. We encouragebased everyon member to get involved whether is by attending local meetings, The Texas membership Labor Code creates the presumption of employment the performance of a service foritwages, and the burden for proving taking part in Give Kids a Smile! Day activities, volunteering at a Texas Mission of Mercy, or participating in TDA Legislative Day activities otherwise is on the recipient of those services. In basic terms, an employee is someone over whose work an employer exercises direction or in Austin. Each member matters and is essential to the continued growth of our Association and of organized dentistry. control. Employers need to be aware there are extensive wage reporting and tax responsibilities that accrue as a result of the employer/employee This is the seventh and final in a series of articles focused on the TDA’s accomplishments guided by the strategic plan. To view the entire plan, relationship. Employers log in at www.tda.org andmust click understand on “TDA 2009” under “Current Issues” on the member homepage. For more information, please contact Lyda Creus differences staff between employees and Focus Committee, at the TDA central office, (512) 443-3675. Molanphy, liaison to the Future Significant differences between employers, independent contractors, as there are independent contractors (Texas Workforce interest payments and financial penalties M ission : T o be The Voice of DenTisTry in Texas levied against those who attempt to Commission) circumvent unemployment taxes.
Employer/Employee Public Organizational
Development Membership Manpower contractor isAdvocacy An independent self• Excellence Worker asserts positionImage as an employee or seems unsure of status employed, bears responsibility for his or • Worker has no DBA (Doing Business As), does not own company, has no client herMembership own taxes and expenses, and is not and/or has no business cards or independent advertising Dentists will value membership and participation inbase, the TDA. subject to an employer’s direction and • Worker performs services on an ongoing basis for the employer Objectives control. The distinction depends on much wage or salary, rather than by the job, and unilaterally set by the • Pay is hourly 1. Improve perceived value and benefits of membership in TDA. more than what the parties call themselves. a. Increase members’ knowledge about the impact and benefits of TDA membership. employer b. Ensure that components are an integral aspect of the membership process. TWC has the legal obligation to collect • Employer supervises the worker in the details of the projects or assignments c. Create greater awareness of the availability of the Peer Review, Ethics & Judicial, and Risk Management benefits. taxes on the wages of all individuals who • of Employer d. Actively promote adherence to the Code Ethics. provides facilities, tools, equipment and/or supplies for work qualify ase. employees the Texas with members • and Employer provides office space and clerical help to the worker at no cost Enhanceunder communication non-members. Unemployment Compensation Act. Each f. Build student awareness of and interest in organized dentistry and membership in TDA. • Worker requires training and periodic supervision year, hundreds of employers required g. Ensure ongoingare contact with students• throughout dental school. Worker has no right to engage assistants to help perform the contract services, h. Work closely with dental school faculty. to participate in Unemployment Insurance or if the worker hires assistants, employer pays wages i. Evaluate number of nonmember dentists who attend and participate in TDA activities (TEXAS Meeting, TDA Smiles appeals cases that involve questions arising • Employer reimburses the worker for expenses associated with the job Foundation programs, etc.). over the classification of independent Metrics • Worker is covered by all or part of the employer’s benefits plan and liability contract workers. At issue is whether a 1. Seventy percent of active licensed dentists in TX will be members of TDA by 2009 (baseline of 68.5% in January 2007); increase insurance given worker is considered an employee membership retention rate to 97 percent by April 2007 (baseline 96% in 2006). • Worker does not determine the hours or the details of the work or an independent contractor. TWC a-d. Increase the number of dentists serving on component peer review and ethics and judicial affairs committees to attain a is charged with auditing to relative to the total number of component society members by August 2009. participation ratebusinesses of 2-5 percent 2. employee Ninety percent of TX dental school graduates actively licensedContractor in TX will be members of TDA five years after graduation (89% Independent ensure wages are being reported dental student conversion class of 2005 in Texas). and proper taxes are being paid on from thosethe graduating • Contractor asserts self-employment and generally maintains client or customer 3. Increase the number of member dentists actively participating in TDA by 1 percent a year (as measured by a variety of means wages. In determining if an individual base – participation at TX Meeting, TMOM, TXDDS, FSI programs, DENPAC participations, TDA legislative day) with annual is an employee or an independent • Contractor is usually hired locally where the customer performs the project report to TDA Board by the Council on Membership. contractor, TWC uses a 20 common law • Contractor performs a service the customer is not qualified or able to supply 4. Establish baseline of nonmember participation at TDA activities (CAS, TDA Smiles Foundation, Membership) factor which canbaseline be found at www. understanding 5. test, Established of members’ of and satisfactionperformed with the benefits of theirsite TDA membership through Member • Work is generally at customer and/or contractor’s office/home texasworkforce.org. TWC determines Benefits andIfServices Survey (completed Nov 2006), re-evaluate % increase at that time for 2009. • Tools and equipment are furnished by contractor or customer 6. Sixty-five all full-time an individual whopercent has beenofclassified as faculty will be TDA members by 2009 (2006 baseline = 63%). • Contractor is highly skilled and requires no training or supervision an independent contractor is really an • Contractor and customer are interested only in the outcome of the work, not in employee, back taxes, penalties and The TDAthen will update it’s strategic plan the with another statewide retreat in August of 2008. details of how the work is done interest are assessed. The Internal Revenue • Contractor has some voice in determining the hours of performing the work Service (IRS) is notified of TWC’s findings • Work is not on a continuous basis, but rather on a job-to-job basis via a federal reporting program. The IRS • Pay is generally by the job and is negotiated with the contractor will then investigate those same employers • Contractor invoices the customer for work performed for compliance with federal laws. • Payment is to the contractor For more information, contact Diane • Contractor has the right to hire assistants and to pay them out of pocket Rhodes at Diane@tda.org, or • Contractor is not reimbursed for expenses (512) 443-3675. • Contractor maintains own errors and omissions liability insurance In 2003, Texas Dental Association members from across the state develop TDA’s first strategic plan, TDA 2009.
Inside Inside Medicaid in My Office? TAGD Dentist of the Year, 2009 Yes, I Think So! Richard M. Smith, DDS TDA Smiles Foundation TDA Smiles Foundation • Year Oneardent of Meadows Grant TMOM gains advocate Comes to a Close — We Did It! Ask • the TDAPresident Perks Partner, OSHA Review, Incoming President’s message Inc., DonatesDDS Disinfectant Hilton Israelson, • Holiday Card Let’s Talk Outgoing President’s message HIPPA A.New David May,Breach Jr., DDSNotification Requirements 2008-2009 TDA Board of Directors Dentists Meet YourWho TDACare StaffDental TDA’s new Finance Director Conference Dee Dee Delagarza In The Loop Congratulations to TDA Component Societies Evidence-Based Practice Claims Streamline Your Insurance Tip of theupMonth Speeding confirmation of benefits and eligibility Meet Your TDA Staff TSBDE RuleNew Update Requirements for dental office radiograph machines FYI: NLRB Update In the News TDA members in the news TSBDE Rule Update
July Journal News Changes at TSBDE Tooth Whitening: A Clinical Review TDA Historical Perspectives October Dentists, dental hygienists, and the dental team News Journal The 2007 C.T. Rowland Award Special Legislative Issue Orthodontic case report The El Paso Dental Conference The Curse of Discovery
Around the State
Force Relaxation Between Latex August 14: and Non-Latex Orthodontic Elastics TDA Board Meeting Austin, Texas October 15-19: Click & Connect ADA Annual Session San Antonio, Texas Join us on Facebook www.groups.to/texasdental Click & Connect Update Profile Follow us on Twitter tda.org – Membership Info twitter.com/theTDA Ask a Colleague tda.org – Features Get LinkedIN TEXAS Meeting Photos linkedin.com, search “Texas Dental texasmeeting.com/estore Association” Volunteer for ‘08 ADA tda.org/volunteerada08