Employment vs. Contractor
for Massage Therapists
In General, there are many people hiring massage therapists as subcontractors
or independent contractors rather than hiring them as employees. They do
this to try to save money.
The IRS website explains this more but in
general they say "
A general rule is that you, the payer, have the right to
control or direct only the result of the work done by an
independent contractor, and not the means and methods of
accomplishing the result." (taken from this article
Independent Contractor vs Employees)
In general if you are an independent contractor you should be paid a flat
rate for each massage. If you are paying a percentage, it may be looked
upon as being a kickback which is illegal. Here in WA State it is defined
under this law..RCW
51.48.280 Kickbacks,
bribes, and rebates -- Representation fees -- Criminal liability -- Exceptions.
I am not sure if the laws are the same in each state. You will have to
check for yourself and consult an attorney to determine your status.
This
was given to me in massage school as a general reference guide: Yes
means employee, NO means independent contractor, but it isn't as straight
forward as just answering these questions.
Please consult an attorney to
determine your status of employee or independent contractor.
-
Worker is required to comply with instructions
as to when, where and how the work is done. Yes
No
-
Worker needs to be trained in order to do
the job. Yes No
-
Worker's tasks are integrated into normal
business operations. Yes No
-
Worker's services are personally rendered
and are not delegated. Yes No
-
Worker is responsible for hiring, paying or
supervising assistants. Yes No
-
Worker has a continuing relationship with
the employer.
Yes No
-
Working hours are set by the employer.
Yes No
-
worker must devote substantially his full
time efforts to the employer's business. Yes No
-
Work is performed on employers premises.
Yes No
-
Worker's services conform to sequence set
by employer. Yes No
-
Worker is required to submit regular oral
or written reports. Yes No
-
Worker's payment is based on time spent not
by the job. Yes No
-
Worker is reimbursed for travel or other expenses.
Yes No
-
The employer furnishes tools, materials and
other equipment. Yes No
-
Worker has no significant investment in the
business. Yes No
-
Worker has no risk of economic loss.
Yes No
-
Worker is working for only one employer at
a time. Yes No
-
Worker does not make services available to
the general public. Yes No
-
Worker is subject to discharge for no reason.
Yes No
-
Worker can terminate relationship with impunity.
Yes No
One of the main differences in contractor
vs. employee is how you get paid and how you will pay your taxes.
An independent contractor must pay their own federal and social security
taxes. An employer will pay the employee's taxes.
If you are a subcontractor or independent contractor, make sure
you have a written contract that outlines the various duties and
responsibilities of each party. You can find a
sample here and another at sohnen-moe.com in the forms section.
There is also a great resource online at this
tax website.
You can also get more
information on the IRS
Website-
Self-Employed Individuals Tax Center
IRS - Employees vs subcontractors
and more from the
Small Business Association
