Dental Employee vs Contractor: What’s Best for Your Practice?

Running a dental practice means wearing many hats. You’re not just a dentist—you’re also managing schedules, equipment, finances, and, of course, your team. One big decision many practice owners face is whether to hire dental workers as employees or independent contractors. The distinction can impact everything from your taxes to your office culture.

What’s the Difference?

Let’s start simple. An employee is someone you hire to work under your direct supervision. You control their hours, provide equipment, and usually offer benefits. On the other hand, a contractor is more like a freelancer—they work independently, often bringing their own tools, and typically set their own schedules.

Think of it this way:

If you’re hiring someone to work regular hours at your clinic, wear your scrubs, and follow your rules—they’re probably an employee. If they come in only when needed, bring their own tools, and do things their way—they’re likely a contractor.

Pros and Cons of Hiring Dental Employees

There are some clear advantages to having employees:

• Consistency: Employees are committed to your practice and offer stable availability.
• Training: You can train staff to follow your exact procedures and standards.
• Stronger team culture: With employees, it’s easier to build a unified, dependable team.

But there are also downsides:

• Higher costs: You’ll need to pay taxes, benefits, and potentially offer paid time off.
• Legal obligations: Employment laws come with strict rules, from overtime to termination.

Pros and Cons of Hiring Dental Contractors

Independent contractors can be a great solution, especially if you need flexibility.

• Lower overhead: No need to cover benefits or payroll taxes.
• Flexibility: You can bring them in part-time or for specific tasks like hygiene or ortho work.
• Less commitment: If a contractor doesn’t work out, it’s easier to move on.

However, keep in mind:

• Less control: Contractors manage their own time and methods—which may not always match your expectations.
• Potential IRS scrutiny: Misclassifying workers can lead to big fines. If someone acts like an employee but is paid as a contractor, you could find yourself in hot water.

What’s Best for Your Practice?

There isn’t a one-size-fits-all answer. The best choice depends on your unique situation. Ask yourself:

• Do I need long-term staff or short-term help?
• Do I want control over how work is done?
• Am I prepared to handle payroll, taxes, and HR requirements?

Many small dental offices start with contractors to stay lean. As the practice grows, they often shift toward employees to create a more stable and cohesive team.

Final Thoughts

Choosing between a dental employee or contractor is a major decision that affects your practice’s growth, culture, and finances. When in doubt, consult with a dental HR expert or accountant who understands the rules in your state. Making the right choice now can save you big headaches down the road. Remember—your team is the backbone of your practice. Whether they’re employees or contractors, pick the setup that helps you build the best version of your dental office.