Entering the Independent Contractor World!

[Pompal 09.]

Today I interviewed for an independent contractor LMT position with a massage center that has been in business for about 20 years. (While I haven't been offered the position, I'm pretty confident I will get a call from the owner.)

This was my second interview, and the best part is that I was paid for my work in both hands-on interviews! That alone made me feel like the company respects my time and values my work. I had a chance to get a better feel for the space and the owner, and I like a lot of things about what I experienced. There are some things that I will have to get used to (I currently work at a beautiful upscale spa so the environment will be quite a shift), and then a few things that I'm unsure about. I've only been practicing for about 8 months so I'm looking for some veteran wisdom!

--Signing a non-compete: Is this typical? If not, does it have some kind of negative quality associated with it? I see it as the owner protecting the business, and don't see any loss on my end from signing it, especially because I won't be picking up another job close to this establishment.

--Perceneforum.xxxe: They are offering me 35% of a $90/hour massage. Is this rate good, ok, bad for a beginning therapist? (The establishment is in the suburbs of Chicago.)

--Linens/Towels: The center has a washer/dryer. As an IC, if I am asked to do laundry, is that something I should be paid to do above and beyond my perceneforum.xxxe? Might laundry be something that is spelled out in the contract that I am responsible for doing?

--Client Scheduling: The place has a receptionist in the day time but not at night. I'd be working mostly nights. There is voicemail that picks up calls, but if I'm in a session, I could miss a possible client wanting to book. Anyone have any experience with this kind of situation? Thoughts? Definitely not ideal.

--Taxes: In IL, does anyone know the ballpark perceneforum.xxxe ICs pay in self-employment taxes?

--Venting: Currently, I'm working PT at a spa as an employee making about $21/hour. We are not allowed to accept gratuities. There are days where it's super slow and other days when the books are packed. I get paid the same no matter, but on the days when the books are packed, I feel like I could be making better money elsewhere. (And I wouldn't have to clean footbaths!) That's why I've started looking, but I'm a little freaked out about losing that hourly wage. I'm really confident in my abilities, and I know I'm a strong beginner therapist with the capability of building a clientele, still, the idea of not knowing what my income will be is unnerving!! I've already read some personal stories in this forum. Anyone else have any wisdom or guidance about switching over/trusting/jumping in??

Thanks in advance for any feedback and thoughts!

Cathy

 

[the only dode]

Entering the Independent Contractor World!

Non compete is quite common.

Do you need to have your own sheets or does the clinic have them for you?

Who supplis the oil?

Does the 35% go to the clinic or you? Do you collect your own money than at the end of the week pay the clinic the 35%?

Are you incharge of bring in your own clients or does the clinic promote you?

Do you have to hang around and work at the desk while you are on a break or can you leave?

 

[steve J]

Entering the Independent Contractor World!

I would also want to know if the clinic will supply your business cards since they're having you sign the non compete. I was going to suggest you keep your PT spa job, but I guess the non compete would not allow that.

35% on your end seems low, around here its usually 50/50 but our prices are also lower (ave $65 for 1 hour). What would be ideal is if you can negotiate a cap on your commission, like say after your 10th client of the week it goes to 50/50, that way the more you work the more you make, and they of course still get a decent cut.

If your following strict IC rules, you are only expected to do massage. Any cleaning or phone answering is more along the lines of 'hired' work. If they're negotiating you doing your laundry, I would try and negotiate your comission rate accordingly. As for the answering service at night, I would try to check it between clients and before you leave so if you have a potiental client calling you can try and call them back and book them with you. The way it kind of works in the spa I'm at is the one who 'catches' the call gets to book them

 

[Mattie]

Entering the Independent Contractor World!

I have a friend of mine who put a cap on the commision agreement in her contract

 

[lois b]

Entering the Independent Contractor World!

I have only been an IC since school, at the same shop I'm at now. (No plans on going anywhere, I'm in a great place!). I can tell you that side work can be listed in a contract and if you sign it, you will be doing unpaid. That's the agreement where I work, but honestly, none of us mind it. We're a small shop and the owner can't afford a receptionist or cleaning crew, although we have been training her 16 year old daughter to help us out on the front desk at busy times and she's doing a great job. In order for her to keep the shop open and give us 60%, we have to help out. Laundry is nothing, we throw it in and out of washer and dryer between clients, fold it as soon as we can, and we all throw it in together and do it as we're able. Some days, I have no one and end up doing everyone's laundry that day. Other days, they're doing mine. First one or two people in in the AM, usually the owner and I, turn lights/music/AC/heat on, put the sign out, check messages and return calls, make the coffee, clean the bathrooms. Whatever we don't get to is done by the next people coming in. Last person at the end of the day vacuums all carpeted areas and sweeps the floors, brings sign in, turns everything off etc. But we try to help out by sweeping if we can, or using the carpet sweeper in our own room if we're done for the day, empty trash cans etc. It works out really well and everyone pulls their fair share.

If we're all in session, the phone goes to voicemail and whoever is out first will check messages and return calls. While there may be a few people who are just going down the Yellow Pages and will make an appt with the first place who answers, I don't think we lose that many clients just because they have to wait 30 minutes to schedule an appt. Our msg says that if they get the message during our working hours, we are all in session and will return their call asap. We're pretty busy so it all works out somehow. We book on seniority, up to so many a day, so it doesn't matter who checks messages.

 

[hubby]

Entering the Independent Contractor World!

Thanks for the responses! I realized that asking questions generates more questions that I need to ask of my potential employer, which is really helpful.

To answer some of the questions asked of me:

The owner supplies linens and oil.

The 35% goes to me, the clinic would make 65%. I'm not certain who collects the money. I'm guessing it's the clinic, and I get a paycheck...? That's a good question I will ask.

The clinic markets pretty well, and I think will supply me with business cards.

Also, I can leave when I don't have clients.

It sounds like a good situation to be starting out with, and I'm excited about the opportunity! I just have to do it, I think, and let go of my fears of the unknown.

 

[j b]

Entering the Independent Contractor World!

I am a little concerned that you are only being offered 35% as an IC :irked: That maybe be your rate if you where an employee. IC usually make 50 - 75 %

 

[Forget Full]

Entering the Independent Contractor World!

For what it's worth...

35% of $90 is $31.50

50% of $65 is $32.50

I'm an employee in a Chicago suburb making $27.50 per 60min massage.

Not much difference. You can't just look at perceneforum.xxxes, you have to look at the hourly rate and decide if you're comfortable with that.

 

[dodo roz]

Entering the Independent Contractor World!

Hmmm. I see your points regarding the perceneforum.xxxes. And as I mentioned above, I'm making $21.00/hour as an employee right now, whether I have clients or not.

Does the fact that I've only been in the industry for just close to one year have any bearing on how much I "should" be making? When the owner told me the perceneforum.xxxe of take home, he said it's the amount for starting therapists. That leads me to believe it will go up, but when, I don't know.

I'm guessing the next step would be to negotiate a higher perceneforum.xxxe. Yikes! I won't say I can't do that, but I will say I have very little experience in that realm. Any suggestions?

Thanks again for your thoughts and feedback.

 

[moondog]

Entering the Independent Contractor World!

For the area I am in, your current job is a very good wage.
I know of no one around here that is paying that much as starting wages.

But yeah, I would go for the second job, I prefer being an IC.

 

[chinghanlim]

Entering the Independent Contractor World!

Oh and you usually get a better tax break being an IC too.

There is a lot of things you can write off, like your travel to and from work, no employee gets to do that.
And it's not complicated to do.

Be sure to get workers comp insurance, it's cheap, and you are in a high injury occupation, make sure your covered.

 

[C. Jean - Muttlvr]

Entering the Independent Contractor World!

Oh and you usually get a better tax break being an IC too.

There are also tax benefits to being an employee. As an employee your employer pays half of your SS taxes.

Be sure to get workers comp insurance, it's cheap, and you are in a high injury occupation, make sure your covered.

I'm confused about this part. Isn't workers comp only for employees? I know that you can buy disability insurance but that's a different thing.

Angie

 

[Eunjin]

Entering the Independent Contractor World!

Oh, my! I'm so thankful to have this forum because all this info is really helpful. Thank you!

I will keep you posted on what happens. I heard from the center today and it sounds very promising.

Workers comp insurance? Where might I be able to buy that? I'm guessing I can write that off, too??

 

[MHMcHH (brown sugar)]

Entering the Independent Contractor World!

Workers comp insurance? Where might I be able to buy that?

Here in Washington state, it is called "labor & Industries. It is not required if you are self employed. But like I said it is cheap and worth it.
Check with your state government (its a state thing), I received info about it when I got my business license.

Google "(your state) workers comp" when i do that, labor and industries is right on top.

I strongly recommend it if you are self employed. I had an injury and if it hadn't been for L&I i would have been TOL.


And yes, there are tax bennies to being an employee too, but not as much as when you are self employed.

 

[micki]

Entering the Independent Contractor World!

Oh, my! I'm so thankful to have this forum because all this info is really helpful. Thank you!

I will keep you posted on what happens. I heard from the center today and it sounds very promising.

Workers comp insurance? Where might I be able to buy that? I'm guessing I can write that off, too??

Disability insurance. Aflack is the most well known.
I think that it's only called workers comp when the employer pays for it.

 

[LgTuttle]

Entering the Independent Contractor World!

So...I start the new position tomorrow and I can't wait! Thanks again for all the information.