Massage Therapy Jobs:
Employees vs. Sub-contractors.
NOTE: Contact an Attorney to help
you determine your Status as an employee or a subcontractor! This is very
critical!
There is also a lot of confusion about whether or not you will be an
employee or a sub-contractor. I have seen many people hired as sub-contractors who should have been hired as employees. Learn the basics about whether or not you are an employee or sub-contractor. You can get some ideas from the IRS website
http://www.irs.gov/businesses/small/article/0,,id=115045,00.html or my website
http://www.thebodyworker.com/employmentvscontractor.html
Fill out this Form with the IRS to determine your status!
IRS SS-8
www.irs.gov/pub/irs-pdf/fss8.pdf
"The general rule is that an individual is an independent contractor if you
(the person for whom the services are performed) have the right to control or direct only the result of the
work, and not what will be done and how it will be done or method of accomplishing the result."
From the IRS Website listed above
Many employers (office owners) may want you to be a sub-contractor so they don't have to pay the extra fees involved in hiring an employee like the unemployment fees and social security taxes and health care benefits.
As a sub-contractor, you are self-employed. You just pay a flat fee or a percentage of your income to the business owner. The business owner takes the risk of signing a lease or buying the property and setting up the business. You may or may not have a furnished room. You will most likely have to do all of your own marketing and business building. You will be required to pay your own taxes, licensing and other expenses. Beware of new franchises or operations that will only pay you $12-$15 per hour as a sub-contractor. Figure out what your other expenses are and deduct that from your hourly pay. Read the fine print in the contract!!
If you have any questions about whether or not you will be an employee or a sub-contractor, please consult an attorney. Many massage therapists should be classified as an
employee and are being taken advantage of.