You dreamed of a career of massage. You researched how to earn a massage certification or license in your state. You attended school, spending hours studying and even more hours in the clinic applying newly-learned massage techniques. As you graduate, what feels like an ending is really a new beginning–the dawn of your new life as a massage therapist. One big question looms: Should you take that gig as an independent contractor, or aim to be hired as an employee? Or would you rather run your own massage clinic or spa? In any case, understanding the difference between employees and independent contractors will be critical.
This second of two blogs will review the advantages and drawbacks of working as an independent contractor. For more background information on business relationships, as well as the pros and cons of working as an employee, we recommend checking out the first blog in this massage career series.
consider independent contractor status.
Employers may require employees to sign non-compete agreements prior to being hired. LMTs may opt to take work as independent contractors because they would like to pursue other business opportunities and independent work.
Another benefit of being independent is that contractors can deduct operating expenses such as massage oil, travel to therapy sessions, and massage tables from their taxes. (Of course, this means you must pay for and maintain your own massage equipment.)
However–and this is the main takeaway that many new LMTs do not realize when agreeing to work as contractors–you must also pay your own taxes from your earnings, as no employer is deducting them for you. To be safe, many experts suggest setting aside at least 25% of what you earn for the quarterly tax payments that the IRS and state tax bureaus will expect. That means that if you’re working for $15 per hour, you actually only get to take home $11.25 per hour. Therefore, when setting your rates you’ll need to tack on the 25% for taxes, as well as any expenses you expect to accrue.
Finally, LMTs should remember that they will need to pay for any health insurance out of their own pockets, since no employer will be paying these benefits. Nor will any other employer benefits, such as sick days and vacation time, be covered. Therefore, it’s critical to carefully set your rates to be high enough to cover your benefits, insurance, taxes, bills, and expenses, while also being competitive enough to win contracts.
LMTs who are hired for independent contract work have reason to file grievances with the state when they are treated as employees. A massage employee is typically hired at an hourly rate. During their scheduled hours, they may be required to do non-massage duties, such as laundry and covering the front desk. However, an independent contractor cannot be required to cover these tasks without pay. Nor can an independent contractor be required to linger around a massage clinic all day without pay, waiting for a walk-in client.
For those LMTs who would like to expand their business, independent contractors can be of great benefit. Here are a few potential advantages of opting to work with contractors rather than hiring employees:
There are a few disadvantages of hiring independent contractors as well.
For both employees and employers, continued education for massage therapy is important. For those looking to be hired, taking classes shows you are dedicated to improvement over time, and more likely to offer effective massage therapy techniques. Our Portland, Oregon massage school also offers classes on massage therapy business concerns. If you’re interested in sharpening your massage skills, navigate to our massage therapy continuing education site , or give us a call at 503-233-6500.
