Things to consider when hiring your first Massage Therapy Independent Contractor
Taxes and Forms
Define the role and expectations by outline them in an Independent Contractor Agreement
Will the Independent Contractor...
■ Outline what is expected when you end the relationship - type of notice
expected etc...
Financials and Tax time
Hiring process
Check out this article for more helpful information:
● https://gusto.com/blog/hiring/hire-first-independent-contractor
- Get a tax ID to keep business finances separate from your personal. You will also need to be prepared to send 1099's to each independent contractor so that they and you can file your taxes. Get your tax ID here.
- Learn more about forms for Independent Cotractors here
- Read the IRS definition of an Independent Contractor here
Define the role and expectations by outline them in an Independent Contractor Agreement
Will the Independent Contractor...
- ■ Provide their own supplies (ie. linens, lotion)
- ■ Help out with office chores
- ■ Help with booking clients (ie. phone, email, text)
- ■ Bill insurance
- ■ Do their own marketing
- ■ Attend events or meetings
■ Outline what is expected when you end the relationship - type of notice
expected etc...
Financials and Tax time
- ○ Will you start at a certain percentage and then increase over time
- ○ How will you track the payments
- ○ How often and in what format will you pay them
- ○ Will they be responsible for any fees ie. credit card processing
- ○ Will they earn commission
- ○ Will you pay them differently for insurance clients
- ○ How will the increased income affect your taxes?
Hiring process
- ○ You can use Craigslist, Indeed.com, the LMT Support network - Facebook
- Group, and the local school job boards (East West, Western States, NUNM, Oregon School of Massage) to post your job ad.
- ○ Use this job ad as a guide
- ○ Use these interview questions as a guide
- ● Forms - W-9 and 1099
- ○ Have the contractor fill out a W-9 and keep it on file for tax time
- ○ You will fill out a 1099 form and give one copy to the contractor, keep one copy
- for your records and file the other copy with your taxes
Check out this article for more helpful information:
● https://gusto.com/blog/hiring/hire-first-independent-contractor