As a Massage Independent Contractor you are basically self employed and work for yourself providing massage services for another company such as a chiropractor , salon or spa. There is much confusion over this position for massage therapists. I have written about it extensively on my other website but this post will combine some of what I have written into one. I am not an attorney of course so it is best to consult one when setting yourself up as an independent contractor and helping you write the actual contract. The written contract will tell each party what they are responsible for and what they are not keeping the relationship as clear as possible. Trouble often arises when contracts do not include all of the details that you might be faced with.
For the most part from what I understand whenever you are a subcontractor it is best to be paid a flat rate for each massage that you do. When you are paid a percentage of each massage the relationship with the employer becomes confusing to say the least.
The employer is responsible for knowing how to hire you as an independent contractor. If they are trying to pay you a percentage you might want to bring the laws to their attention. There are many reasons why an employer would try to pay you a percentage with the main reason usually about making money for themselves. While an employer deserves to be paid for the use of the room and providing clients there should also be a limit. It will also depend on what is provided by the employer.
Be sure to read as many articles and resources as you can about determining your status. Here is a collection of them that I have found to provide solid information but again I am not an attorney!
I highly recommend this book!
IRS Website – Employee vs Contractor
Form SS8 of the IRS to have them determine your status fill out this form. Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding
Independent contractor vs employee (PDF) – from Pieck and Conniff Attorneys for the AMTA- WA
Independent contractor status – Futurelmt.com -To assist your understanding of this vital topic, we are providing the following information (adapted with permission) from IRS Publication 937, Business Reporting
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I still find this confusing. For instance, I was offered a “job” as an IC with a local doctor. He has two offices and wants me to work 3 days in one office and 3 in the other each week during his normal hours. He provides the room, I provide everything to perform the massage (table, linens, oils, laundry service, etc.) His receptionist will book clients when they call for an appointment. For this he wants to do a 50/50 % split. Some people are telling me that I am really an employee in this situation (and he is trying to avoid taxes, etc) others say that it is an IC position. Any thoughts?
It is confusing and there is no right answer. If you don’t feel like it is fair, challenge the proposal and let him know what would work best for you. In general, if you are an IC, the employer can not tell you when you have to work as far as I understand. If you are providing the stuff you are self employed. Come and ask on my Facebook page – http://www.facebook.com/MassagePracticeBuilder
A few key considerations- 1- Who does the client pay? 2- Can you give the client your info to see you outside the center? 3- who provides equipment/tools? 4- are you at risk if the client no shows or do you still get paid? And last, but a KEY component – can the business operate without therapists? If the answer to the last one is no, you are probably an employee. (background: we were audited on workers status in 2002.)