Dear Loribeth Let me try and answer your question(s). 1. If the dentist you are providing services to is a large enough practice, then the answer is 'YES' you may be absorbed as a full-time employee. However, if the dentist's practice is not large enough or if he does not need a full-time hygienist or if he cannot afford one, he may only employ you as an independent contractor (or a 1099). 2. For the hours you are actually providing the service, are you being paid (hourly) what you think a hygienist-employee should be paid? Now be careful when you answer this question. I do not mean the total money you get every month, as there may be times during the day/week/month you are not providing a service, as you are simply waiting to be called/scheduled by the dentist you are working for. If the answer if YES, you have nothing to be worried about. If the answer is NO, you should definitely set up on your own. 3. Setting up on your own is always beneficial, and I would suggest that you do, UNLESS you are a full-time employee. The advantages are: - If you are on your own, you can work for more than one dentist's office; - There are significant tax benefits, as you can treat portion of costs related to the portion of your room, telephone, automobile mileage, internet, stationery, advertising, entertainment, etc. as a tax deductible. You cannot do this as an employee, as commuting miles to your workplace is not tax deductible, and the IRS does not allow you to claim home use for work, as you are expected to work out of your employers office. But as an independent contractor or as a self-employed person, you are a 'consultant' hiring yourself out to whomever you please. If you do set-up on your own, you may want to go to your employer and discuss availability schedules and work out days/hours you are needed most or you will be available to him during the week, as you could now start doing the same with other dentists. If the problems you are facing really is to do with managing your tax and social security withholding, I suggest run your 1099 through a payroll company like ADP, and they will handle the monthly withholdings for you, so that you will not end up owing a lot of money to the IRS at the end of the year. They do that for a nominal fee. Do you think I have answered your question?? Best of luck with your endeavors. George

>>> why a dental hygienist is considered self-employed or an independent contractor? <<<<<< Because it's easier for the dentist and so far they are getting away with it. From what you described, the relationship certainly seems to be an employee relationship, not a contractor. One day the IRS may decide there's money on the table they are missing and actively campaign to change things. Until then, I guess you are a contractor providing a service that the dentist is willing to pay for. >>>> Would it be beneficial to start my own business to ease the tax burden or would it just increase my tax liability? <<<< As an employee, the dentist would pay half of your social security tax and Medicare tax (probably 7.65% of income). Depending on what state you are in, an employer pays a portion of state payroll taxes too. The dentist's income is being recorded as 'other income' on your tax return with you paying the 15.3% self employment tax, correct? As a sole proprietor you'd still have to pay the tax, there would just be more tax forms to fill out. As an LLC or Cooperation, there would be a whole lot of extra paperwork and fees that may not justify the cost if you are talking about the equivalent of one person's annual income. I don't know what a dental hygienist earns, but typically an independent contractor has to earn more than an employee for doing the same job. Not just for the tax differences, but to cover the cost of benefits (like health insurance). Remember, if the dentist had to hire you as a full time employee, he'd be paying 7-1/2% more than he is as an independent contractor. Plus benefits, depending on how many hours you are working. If you can't earn what you want as an independent contractor, can you find a larger dental practice that would hire you as an employee so you get the benefits?