Critical Questions: Will you hire W-2s or 1099s?

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Practice of the Practice: Grow a Group Practice Podcast

Practice of the Practice Network

296 episodes

2 days ago

Andrew Burdette founded Mindful Counseling PLLC in Asheville, NC, shortly after completing his graduate program in clinical mental health counseling. At the start of the pandemic, he pivoted to an online solo practice, and in 2022, began to grow a group practice.

Andrew joined the Practice of the Practice Team in 2023. In this podcast, Andrew will be focusing around all things group practice, from just getting started to growing and scaling to fine tuning your systems and team. In this podcast you will hear about the nuts and bolts of how things work and some perspective on how to do it well from experts in the field.

All content for Practice of the Practice: Grow a Group Practice Podcast is the property of Practice of the Practice Network and is served directly from their servers with no modification, redirects, or rehosting. The podcast is not affiliated with or endorsed by Podjoint in any way.

Critical Questions: Will you hire W-2s or 1099s? | GP 295

Practice of the Practice: Grow a Group Practice Podcast

23 minutes 45 seconds

1 month ago

Critical Questions: Will you hire W-2s or 1099s? | GP 295

What’s the key difference between hiring 1099 contractors and W-2 employees? How does your level of control over staff change with each model? Why is it important to align pay structures with your long-term vision for the practice?
In this podcast episode, Brandon Shurn offers you critical questions to answer on expanding your practice: Will you hire W-2s or 1099s?

Podcast Sponsor: Headway

I want to thank Headway for sponsoring this episode. If you run a group practice, you know that accepting insurance can be overwhelming. Between credentialing, billing, and payroll, the admin side can easily take over your week. Headway was built to help you handle this — and they’re the only platform designed specifically for in-network group practices.
Whether you’re growing your team or running an established practice, Headway makes the business side easier with faster credentialing, higher per-session rates, and biweekly payments your team can count on.
They work with therapy, psychiatric, and hybrid groups — and there are no subscription fees. Just the support you need to run your practice with ease.
Run your best group practice with Headway — trusted by thousands of group practice leaders to simplify insurance admin and reach more people through in-network care.
Curious how Headway can work for you?

In This Podcast

* Hiring 1099 or independent contractors
* W-2 as employees
* Pay structures and benefits

Hiring 1099 or independent contractors
First and foremost, reach out to an employee attorney within your area so that you can make sure you understand the full scope of both sides of the coin before settling on whether you want to hire W-2 or 1099 staff into your private practice.
The crucial point to remember is that a 1099 or independent contractor is not an employee of your practice. This model works best for you if you want a more hands-off approach with your staff.
Not only are they not an employee of your practice, they’re in control over how they show up. What that means is that you, as the practitioner owner, you cannot govern them in any way … You can’t tell them how to dress, you can’t tell them what modalities to use. There’s a very limited amount in terms of control that you have when you bring on 1099s. (Brandon Shurn)
W-2 as employees
However, W-2s are employees in that they become a part of your practice.
If your goal is to create a cohesive culture and working environment within your practice, where everyone is interrelated and connected, then this model may be best for you.
You have more control over how they show up. You can talk about the culture of your practice, and ensure that the people that you bring on board are aligned with that in more ways than one. (Brandon Shurn)
Pay structures and benefits
With a lot of practice owners that have 1099 contractors on their staff, the typical pay split is 60/40, where the contractor keeps 60 and the owner keeps 40. Independent contractors also have to pay out of pocket for supervision, even if it’s coming from the practice owner.
However, with W-2 staff, the pay split changes, but the amount of benefits can increase, because you can organize insurance, dental, paid leave, and other types.
So, again, you will need to make this decision based on the overall dream you have for your business and the model you want to run it on. Remember, look at what is legal and workable in your state as well!
One question that will help you make the determina...