switching from employee to IC

[Ella_Fitzzy]

I am currently working for a reasonable rate at a chiropractor's office in WA state. I am fairly busy, have a lot of repeat clientele, and take insurance.

We have recently run into a glitch with an insurance company with which I am credentialed and my employer is not. They do not want to pay on his tax ID number; they want to pay me directly.

He is working on getting credentialed with them, but if it cannot happen, he mentioned that we could renegotiate our relationship & I could work as an IC.

This is intriguing to me, as I do do some work on my own, as it is, and I have been considering working at another location which only has ICs.

My question is for both business owners & independent contractors:

I am wondering what sort of rate increase would be fair to negotiate in this situation. He would continue to provide most all supplies (he pays for linen service; I do the cradle covers & pillowcases & towels, etc), his billing person would be doing that for me, his receptionist would continue to book & try & get new clients to try massage as well as chiro. Really, not much would change except that I would now have to pay my own taxes (and could write off expenses).

So that means that he is saving money because he no longer pays my taxes.

So if you are a business owner, and you pay someone $30/ session, how much more do you pay in taxes on top of that 30? Is that the same rate for what I would have to pay on my own? I think it would be fair if I netted at least the same as I bring home now, if not more to cover extra paperwork & responsibility. I mean, this would save him money as well as time, right?

I look forward to input here. I think this conversation probably won't happen until after the New Year, but I would like to be as informed as possible before this occurs. Thanks!

 

[Pompal 09.]

Self employment tax is 15% so you can add that in first. I probably wouldn't work for less than $45 an hour.

I used to work at at chiro's a long time ago and they billed under my name but I just signed it over to the chiro. and then he paid me. I actually am not sure if it was legal as I was just starting out and it was an IC position then.

I think PT"s need to be credentialed and bill under each therapist name even though they work at a clinic so there must be some way to do it but the chiro should be able to get credentialed easily. It just takes a few months to come through.

The question really is what do you need to make?

Julie