I have a part-time offer to become an associate as an IC. The offer is 37% minus lab bill, with lab being taken out prior to payment. Just curious what others are getting and what is regarded as average percentage. This is not to discuss legality.
So to be clear, lets say your revenue is $10,000 and lab is $700. What’s the math?
1. 10,000 x 37% = 3,700 – 700 = $3,000 check to you? or
2. 10,000 – 700 = 9,300 x 37% = 3,441 check to you?
As you can see, #1 really equals about 30% of your revenue while the other is nearly 34.5%.
As an IC #2 would be closer to what you’d ask for since the owner gets to avoid payroll taxes and potential other employee related costs. 30% is what employees get with employers paying payroll taxes.
This first appeared on Dentaltown.