Advantages:

• Clarifies scope of services, responsibilities, and compensation, reducing misunderstandings and disputes.
• Provides staffing flexibility for specific projects or temporary needs without long-term employment commitments.
• Manages costs by outlining payment terms, avoiding expenses related to full-time employees.
• Ensures compliance with IRS requirements, supporting proper tax reporting and avoiding misclassification issues.
• Includes confidentiality and non-disclosure clauses to protect sensitive information.

Disadvantages:

• Without an agreement, scope of work, responsibilities, and compensation may be unclear, leading to disputes.
• Lack of clear payment terms can result in unexpected costs or compensation issues.
• Failing to define the contractor’s status can lead to misclassification issues and IRS penalties.
• Increased liability for employment-related claims if the contractor's status is not clearly defined.
• Absence of confidentiality provisions increases the risk of breaches of sensitive patient information.
• Undefined work scope can lead to uncertainty about deliverables, deadlines, and performance standards.