Should you hire additional therapists for your practice as 1099 or W-2 employees? I’ll walk you through the decision process in this blog series so you can make an informed decision.
If your private practice is thriving and you are considering hiring additional therapists, one of the major questions is how to structure the employment relationship. Should you hire additional therapists as a 1099 contractor or W-2 employee?
In my private practice consulting experience and based on recent discussions in my Private Practice Toolbox Group it seems that most private practice therapists favor hiring therapists as 1099 contractors. When I ask why I often hear something like, “I hire 1099′s because then I’m not responsible to pay the therapists employment taxes and it provides some cushion against legal responsibility for the acts of therapists providing contract services.” While these statements are true, there is a lot more to consider when structuring the employment relationship and misclassification can be a costly mistake.