Relief Pharmacists Should Be Well Equipped
A continuing problem for relief pharmacy practice is the ambiguous employment relationship created between a pharmacy with its relief pharmacists. Failure to clarify this relationship by following state and federal guidelines may expose a pharmacy to a tax liability for penalties and interest on payroll taxes and other employee benefits.
According to state and federal guidelines, a pharmacist employed by a pharmacy utilizes the pharmacy's supplies to provide services. A relief pharmacist is hired by a pharmacy and should furnish his/her supplies. In the early 1990's an independent law firm specializing in employment issues considered this situation, and in their opinion determined that ownership of the supplies is a crucial factor used to determine employment status. The law firm's recommendation is that a lease arrangement be structured between a pharmacy and its relief pharmacists to help clarify their relationship. Auditors from a state's Worker's Compensation Fund and Employment Development Department participated in a session of questions and answers with relief professionals. When queried, these tax auditors agreed with the law firm's recommendation which is: a lease arrangement is a satisfactory vehicle for complying with the supplies ownership guideline, provided that the amount paid to the pharmacy is not frivolous.
If it ever comes to an interrogation by an auditor, a relief pharmacist must be very careful in expressing him or herself. Anything he or she utters may be compared to regulatory guidelines and the employment relationship may be determined upon this basis. The auditor's official conclusion may even challenge the primary issue of the employment relationship, which is control. The crucial issue is "who controls the manner and means by which a relief pharmacist renders his/her therapeutic and public consultations". Relief pharmacists are usually reclassified as employees of the pharmacy and consequently, it is imperative that the pharmacy and its relief pharmacists be both knowledgeable and in compliance with the guidelines. Additionally, it is important to substantiate with written documents the terms of hire between a pharmacy and its relief pharmacists.
Both the pharmacies and its relief pharmacists can maximize the benefits available to each other by thoughtfully structuring their =relationship. With careful planning they will minimize the potential problems which could arise when either federal or state agencies question the employment status of a relief pharmacist.
Need more information? Download the Relief Pharmacist Handbook