Hi everyone, this is my first time on this site so I hope I am doing it right! I'm a licensed massage therapist and a newly licensed esthetician. I just found myself with the opportuity to work for a 5 room massage therapy studio as an esthetician and do some part time massage therapy work. The owner only has employees at the time but has offered me the option to work as an independent contractor. I've never worked as one before (and the owner has never hired one before) and am a little confused on the ins and outs of it all. My main concerns are 1.) do I have to be insured as a LMT and esthetician separately, or is there a joint insurance option? 2.) what am I responsible for purchasing?..(products, equipments, brochures, etc..) 3.) what are the main pros/cons of independent contractor vs. employee? -Thanks in advance!!
Tags: contractor, esthetician, independent, massage, therapist
Hi! There probably is an option for joint insurance. I'd def check into that. Not sure where to go for LMT insurance since I'm just an esthetician. Wonder if ascp offers that?
The company should provide all the equipment, product, and supplies since they'll be taking a cut of what their charging for facials. Usually companies give you like 25% commission off of what they charge for facials. For instance if they charge $100 you'll get $25. Given that they really need to supply everything for you , scheduling, and marketing. Dont let them have you do office work unless theyre gonna pay you for it. Companies seem to love to over work you and under pay you. I've been burned by that end of it.
As independent contractor you have more flexibility. They can't keep you at work unless there's facials to do. Taxes will be different. I think you'll get w9 form from them. You can write off mileage ad anything facial related.
Hope this helps
Thank you so much! It really does help. My confusion now is on independent contractor vs. booth renter! Any input on that? I've read some explanations suggesting they are interchangable terms while others say they are vastly different.
You're welcome. It depends I never did booth rental bc its not allowed in PA. Some states allow it, others don't. With booth rental you need to do that in a salon type environment. Plus you'll need keep good records for the salon. They probably take a cut as well. Independent contractor you can have more of a schedule too. I'd go with both options especially if booth rental is once a month type thing.
I am dual licensed and have ASCP/ABMP joint insurance...I don't think you can find a better deal. Give them a call.
Regarding your employment status, in this industry most IC's would actually be classified as employees. However a lot of owners prefer to pay as IC rather than employee in order to save paying their tax liability.But you are going to be stuck with whatever they offer you.
If you will be providing your own product & supplies for facials then you should receive a higher percentage commission than if owner is supplying. You will need to figure out retail sales also.
I have been on all sides of employment and honestly have to say I have made the most income from being an employee only vs IC or solo (expenses are very high!)
Thank you so much for your response. I will def call about the joint insurance. I was offered a position as an IC, however she has said that I purchase all products/retail/etc..but keep all profit and do my end of taxes as well as pay rent for the room. Which then in that case I feel as though I would be classified as a booth renter. Do you know if there is a difference between an IC and booth renter, or is it just an interchangable term? I've done some reading online, but have found mixed answers!
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