One of the biggest issues in the massage profession is that many employers of massage therapists will incorrectly classify their workers as independent contractors when they really should be employees. It is important that you understand the difference between the two and know how to use this in your favor when looking for a job in massage. Use this information to get you started in researching this information to apply to your own needs – whether you are looking for a job in massage or looking to hire employees/independent contractors. While this information has been put together after many hours of research, it does not constitute legal advice.
Please consult an attorney and a tax accountant to make sure you have the correct classification for YOUR situation.
First off there are Federal Requirements for Independent Contractors set up by the IRS and The Department of Labor. There are also State requirements which may be a little bit different than the Federal requirements making it even more confusing.
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Steve says
Individual states also have for independent contractors. The State of Washington states that it is possible for an employer to be in compliance with IRS guidelines for hiring an IC and still not be compliant with state rules.
Irene Diamond, RT, Biz Mentor says
Julie,
The portion on ‘an integral part of the business’ is key.
Based on our own wellness center’s experience of an employee classification audit for 2002 by the EDD, and through consulting for many other wellness businesses over the years, this is the main point that will usually sway them towards classifying the worker as an employee rather than as an IC.
“work is integral to the employer’s business if it is a part of its production process or if it is a service that the employer is in business to provide.”
In most massage therapy places, the massage business could not exist without the massage service providers, therefore their work is absolutely integral.
In my experience, most workers should be classified as employees and are in fact misclassified as ICs while being treated as employees, without the employee benefits.
There are other options for business owners to structure their business to comply with the state and government laws, while also not having employees, but they must understand the laws and take the correct steps to follow all the rules.
AnonymousAttorneyWhoCares says
Julie,
First, I am a lawyer. Second, by writing this article you are illegally engaging in the practice of law. Please respond if you are in fact a lawyer who has passed the Washington bar exam, in which case you should be disbarred for misinforming your readers about the law. Your advice is way off the mark. There are many good and legal clinic situations with massage practitioners functioning as independent contractors. Smart readers will disregard this article and look for advice elsewhere.
Julie Onofrio says
No I am not a lawyer – what is inaccurate in this article? When would a Massage therapist be considered an IC when most massage businesses have massage as their main source of income making it fall under the very first thing listed:
“The extent to which the work performed is an integral part of the employer’s business. If the work performed by a worker is integral to the employer’s business, it is more likely that the worker is economically dependent on the employer and less likely that the worker is in business for himself or herself. For example, work is integral to the employer’s business if it is a part of its production process or if it is a service that the employer is in business to provide.”