Associate to “Independent contractor” ???

Another new twist on an old story:  A soon-to-be grad came to me with a deal from a doctor which had her working for 6 months as an associate (employee) and then she would start working as an independent contractor (NOT an employee).  How is this possible?  I didn’t see anything in what she told me that would make the difference.  Remember that the IRS assumes employee status unless they have some evidence to the contrary.  Someone who is working as an employee doesn’t just magically become an independent contractor unless he or she is now in a separate business and paying rent.  Let me know if you have questions about this.

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