Thank you for this Joe. I plan to bring a part-time therapist to my office later this year (more to come). There`s not really much online related to 1099 consultants, except for this one and Julie Hanks stuff. I`d definitely prefer to do 1099 entrepreneurs for a variety of reasons, but the possibility (and implications) of misclassification scared me a bit. Basically, I would provide the DSE, office space, furniture, notepads, corporate picnic (because I`m such a guy), etc. I would expect them to use the practice EHR and not keep separate diagrams as well as do therapy from the office space (not that I expect anyone to want to do anything else). So I`m afraid it involves too much control. I also wonder about supervision. I see how it works in terms of separation of control. However, I am wondering if you expect all of your advisors to be involved in this oversight, or is that just an option? I would only bring in experienced clinicians who I don`t think need to be supervised, and I think pushing them in that order would seem strange to me. Of course, the fact that I would be open to them offering therapy as they see fit helps with argument 1099. I would also agree with people who set their own hours, etc.
What do you think? Sorry, I`m 🙂 so long that private practices have two ways to manage money from there. In some cases, income from all sources is paid by the therapist into the therapist`s bank account. Expenses and rent are then paid from this income. This is a typical “independent contractor” scenario. This is the simplest organizational structure and it is quite common. The OSHA literature does not generally use the term “independent contractor.” It uses “independently”. There`s a pretty simple reason why the self-employed are exempt from OSHA. OSHA exists to protect workers from dangerous or “unhealthy” conditions that their employer might force them to use economic leverage. A key difference between employees and independent contractors is that the independent contractor is free to decide when and for whom they will work. Thirdly, this factor also raises the question of how counselling services are provided.
According to the theory of the three factors, when an organization tells a therapist that he can only do psychoanalysis, for example, it would control the functioning of the therapist, which tends to indicate the status of the employee; Conversely, if the therapist has the discretion to choose his or her approach, this power tends to indicate the status of an independent contractor. It goes without saying that this discretion must be exercised within the framework of generally accepted advisory principles and practices. By right of termination, we mean the right of the organization to dismiss an employee in accordance with the organization`s will. On the other hand, independent contractors are usually subject to the terms of an independent contractual agreement. This agreement then describes the reasons why an organization can reduce the burden on an independent contractor. REFERENCES 1 Public Law 95-600 2 Revenue Procedure 85-18, 1985-1 C.B 518, Section 3.01 3 General Investment Corp.c. United States, 823 F. Specifically, the IRS requires independent contractors to pay 100% of their Social Security and Medicare taxes. This increases the independent contractor`s tax bill by 7.65% compared to the tax liability of a regular W-2 employee. But if the employer decides to pay the therapist as a regular employee of W-2, the company, not the individual, pays 50% of the employee`s Social Security and Health Insurance taxes. Good question. I am working on a survey to collect real data on your question.
From what I know, 70% to an independent contractor is the most generous I`ve heard of. A 50/50 split for an independent contractor is a fairly small percentage for the clinician. More common are 60% to 70% compared to the independent contractor. As with all rates, it depends on what is included in the agreement beyond pure payment. The general rule is that the more the organization contributes, the higher the percentage it keeps. Finally, the new stimulus package will provide paid sickness and family leave benefits to independent contractors until March 14, 2021.Under the CARES II Act, unemployed or underemployed independent contractors who have a combination of self-employment income and wages paid by an employer will continue to be eligible for AUPs. . . .