I have a dental practice where one of the dentists has been a 1099 employee for the past few years. On October 1, 2004, this dentist was switched to a W-2 employee.

They have a calendar year SH PS 401k plan with a one year eligibility. Semi-annual entry dates.

Do I treat this dentist as if she were hired by the company on 10/1/04 or can I count her years of service as a 1099 employee?

Thanks.

If she truly was an independent contractor then her hire date is 10/1/2004. However, what about her job changed that created this change all of a sudden? Classifying people as independent contractors when they are truly employees is rampant and this may be one of those situations. If it is, her hire date would be earlier potentially.

I did a little investigating and the only change is that this dentist became a full-time employee back in August 04. Previously she had only been working about 12 hours a week.

I agree that she never should have been classified an independent contractor.