

Most new graduate and seasoned physical
therapist, occupational therapist, speech therapist and therapist assistants do
not know the difference between working as an employee vs. an independent
contractor.
Nothing drives me crazier than when I hear
of a rehab staffing agency, rehab or home health facility requiring a PT,
PTA, OT, COTA, SLP or SLPA to work as a 1099 independent contractor. It bothers me
because most physical, occupation or speech therapist and therapist assistants
I speak to do not know what it really means to be an independent physical,
occupational, speech therapist or therapist assistant independent contractor or know the consequences of not operating properly. A therapist works as an independent contractor out of choice not force. Working out of force can prove to be a costly mistake for the therapist and serviced agency or facility incurring state or government fines, penalties and interest.
The Federal Insurance Contributions Act (FICA) tax rate, which is the
combined Social Security tax rate of 6.2% and the Medicare tax rate of 1.45%,
will be 7.65% for 2020 up to the Social Security wage base. The maximum Social
Security tax employees and employers will each pay in 2020 is $8,537.40. If a
rehab staffing agency, home health company or facility hires you as an
independent contractor they do not have to match the FICA tax rate because you
are not an employee. Most responsible companies legitimately hire independent
contracting physical, occupational, speech therapist and therapy assistants to
supplement their staffing needs while others hire because just to save on employee
tax expenses and add to their bottom line. That is okay if everyone is on the
same page, preferably via a contractual agreement. But it is not okay if a 1099
worker unexpectedly receives a tax bill or unexpectedly gets audited by local
or federal agencies. You work as a rehab independent contractor because you
know what you are getting yourself in to and understand you are offering your
services
with no guaranty of getting paid.
Educate yourself and know the difference between an employee vs. physical
therapist, occupational therapist, speech therapist or therapist assistant
independent contractor before you agree to work as one.
The IRS
Common Law Rules utilize three categories to determine the status of a worker:
A. Behavioral:
Does the company control or have the right to control how the worker does his
or her job?
B. Financial:
Does the company provide regular scheduled direct deposits or are they provided
on invoice for services rendered. Does the company reimburse for supplies or
provide all tools needed to perform a job or does the worker utilize their own?
C. Type of
Relationship: Are there written contracts in place? Does the worker have access
to benefits like direct deposit, retirement plans, medical or other insurances
or vacation and sick pay?
A rehab employee is one who:
1.
Desires and chooses to
work as an employee and expects to be paid on time and provided benefits that
can be compared to other employers in an area.
2.
Is provided liability
insurance and/or offered other insurances or paid time off benefits.
3.
Works within hours of
operation
4.
Must comply with company
employee policies and procedures
A rehab independent contractor is one who:
1.
Desires and chooses to
work as an independent contracting PT, PTA, OT, COTA, SLP, or SLPA and
understands there is no guarantee of being paid on time and the only benefits
provided are those by you.
2.
Provides own liability
insurance and/or other insurances and realizes that paid time off is time you
are not getting compensated for.
3.
Works when and where you
choose.
4.
Adheres to your own
policies and procedures.
I hope this blog was informative for you. You want to
work as an independent physical, occupation, speech therapist or therapist
assistant check out The Best Free Agent…IS YOU! by Reyes Nino!
Wouldn't it be a good idea to create a course?