Why is '1099ing' a source of fines and other problems for PPO's?

Why is '1099ing' a source of fines and other problems for PPO's?



Answer: Many PPO's used the IRS form 1099 form (meant for contractors) with their employees, in a fraudulent attempt to 'get around' laws involving payroll taxes and worker's compensations insurance. PPOs can on contract/1099 security work to other licensed PPOs; anyone else used must be a valid employee (with payroll taxes and workers compensation insurance)