The Biden administration is planning dramatic changes to employment laws and related enforcement. Among them is to join a growing number of state governments in adopting stricter rules to defeat workers classified as independent contractors and to ramp up employment-related audits. Here’s a tax-savvy strategy to prepare for the tougher new rules.

Some practices have classified associates as independent contractors, rather than employees, in order to reduce their costs. If successful, the host practice is not responsible for payroll taxes (i.e. Social Security, Medicare, unemployment, etc.) or workers’ compensation on the associate’s compensation. Nor does the practice have to include the associate in its retirement plan and fringe benefit (such as health insurance) programs.

The IRS, state tax departments, and other government agencies “see red” when doctors...