Drug Formulary. Prior Authorization. Most health plan Drug Formularies have procedures to limit or restrict certain drugs. This is done to encourage doctors and patients to use these drugs appropriately, for the safety and best interest of all members. Most often, these drugs have safety issues, a high potential for inappropriate use, or have lower-priced alternatives on the formulary.
The distinction between an employee and independent contractor is critical because companies are generally liable for actions of employees, as long as those actions are performed within the scope of the employment relationship. However, companies are not generally liable for the actions of independent contractors.
The question of whether someone who works for you is an employee or an independent contractor has important tax consequences. If you have employees, you have liability to pay and withhold Federal income tax, social security and Medicare taxes, and Federal unemployment tax, report wages and issue statements to employees. For independent contractors, generally no withholding is required. For most workers, whether in the private or public sector, the same common-law tests are applied to determine whether someone is an employee or an independent contractor.