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Independant Contractors

Hi everyone,
I am trying to get information about the ways that independant contractors get paid.
I am hiring a colleague in the interest of expanding my business and helping her grow as a therapist at the same time. I will not be charging her rent, but will be adding her as a therapist so that new clients whose schedules do not allow them to come during my hours can see her. She has been practicing on her own for several years, but her business has slowed down so much that she only has a handful of clients left. She will receive increased exposure in the community and an opportunity to grow her client base through my business. We have agreed that she will pay me a "service" charge for basic administrative duties and client referrals. I look at it as an opportunity to "work smarter, not harder".
We are trying to work out how much I should charge her, so I am looking for a baseline of what is the common practice in our area.

If you have ever worked as an independant contractor for someone here are my questions:
1) Did you pay an hourly rate or a percentage?
2) Did you pay per regular massage rate, regardless of any discounts being offered by the location/owner? or Did you pay according to what your receipts were at the end of the day, which would fluctuate depending on discounts?
3) Assuming the clients paid the business/owner, how often did you get a check for your services rendered? (weekly, bi-weekly, monthly?)
4) Did you get business cards made to match the business you were contracting for?
5) What advice would you give me as a therapist/owner that can help me maintain a good relationship with my colleague while acting as her "boss"?

thank you so much for your help.

Replies to This Discussion

Permalink Reply by Marilyn St.John on October 12, 2009 at 1:49am

Hi Exie ~

I'm a massage therapist IC and much of my work is in a chiropractor's office. I really like our arrangement which goes something like this:

I get a percentage of the agreed-on set fee for the massage. This is my take-home pay for which I get a check every two weeks. I am not on their payroll and am not expected to do anything besides massage. At the end of the year they give me an IRS Form 1099 so I can pay taxes. The chiro's portion of the massage fee covers the rent on the space I use within their establishment, as well as the receptionist who books the appointments and does the insurance billing (massage is covered under some insurance plans in MI but ONLY if it's "prescribed" and billed through a doc.) I supply all my own stuff. I do not massage their clients outside of their office because it has the potential of being a liability for the chiropractor, even though I do carry my own liability insurance and maintain a personal client list. Hope this helps, let me know if you have questions. ~m

Permalink Reply by Exie Buehler on October 12, 2009 at 2:36pm

Hi Marilyn,
Thank you for your experience. I am happy to hear that you are getting a 1099 every year. In my research, I have learned that many people working in a "spa" profession providing professional services are not given one and this is causing them and the spa/clinic owners a huge problem.

I will definitely be providing one for her and I like the idea that you get a check every 2 weeks. I will definitely consider that option.

thanks so much,
Exie

Marilyn St.John said:

Hi Exie ~

I'm a massage therapist IC and much of my work is in a chiropractor's office. I really like our arrangement which goes something like this:

I get a percentage of the agreed-on set fee for the massage. This is my take-home pay for which I get a check every two weeks. I am not on their payroll and am not expected to do anything besides massage. At the end of the year they give me an IRS Form 1099 so I can pay taxes. The chiro's portion of the massage fee covers the rent on the space I use within their establishment, as well as the receptionist who books the appointments and does the insurance billing (massage is covered under some insurance plans in MI but ONLY if it's "prescribed" and billed through a doc.) I supply all my own stuff. I do not massage their clients outside of their office because it has the potential of being a liability for the chiropractor, even though I do carry my own liability insurance and maintain a personal client list. Hope this helps, let me know if you have questions. ~m

Permalink Reply by Joan Osterhouse on October 29, 2009 at 8:50am

Okay let me see if I can help...
I worked for a chiropractor first and we did a 70/30 split with me getting the 70. I made my own business cards. I got paid weekly. My prices were the prices-we didn't do discounts. I personally would let either make her pay a small amount for the space maybe start out with a 3 month aggreement and then increase the price after that. That way it wouldn'y be too much for her to get started but still something to see how it works out. That way whatever she charges for the massages is hers up front. Or do the percentage and that is you "fee" which will make way more paperwork for you. Independant just means that she shares a space with you and does her own thing. I am rambling I hope this makes sense. Just remember it's my opinion and you have to do what feels right for you. I hope it works well.