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Legal: Pass the test for paying employees

August 23, 2013Edward Vishnevetsky

A. We all know that the federal Anti-Kickback Statute does not allow DME suppliers to pay independent contractors a commission-based compensation for performing marketing and sales services, which is why most DME suppliers that want to pay a commission-based compensation hire marketing and sale personnel as full-time or part-time bona fide employees, pursuant to the “employee” safe harbor to the Anti-Kickback Statute. However, it is important for DME suppliers to remember that paying...

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