DotCom Therapy is now Huddle Up

Working as an Online Therapist: 1099 vs W2

This article was originally published on DotCom Therapy and has been updated as DotCom Therapy is now Huddle Up.

It’s no surprise that the landscape has changed for therapists in our post-pandemic world. Teletherapy services have become more common, and stakeholders have begun to truly understand and rally behind the service delivery model.

This has opened up more choices and opportunities for therapists, including how they are compensated for their work and expertise. For-profit companies often offer 1099 independent contractor positions to therapists as a way to keep costs low, as the 1099 employee pays all their own taxes and benefits.

A 1099 position may also be appealing to someone who wants to choose where, when, and how to work. This type of compensation allows for a sense of freedom for a therapist who might need a flexible schedule or only have a few hours to dedicate to working.

While each decision is a personal one, there are indeed benefits to remaining a W2 vs a 1099 contractor. And here’s why…

  1. Consistency

When a therapist chooses a W2 position, it eliminates the guesswork and stress over income and tax withholding. Work is often more steady, and income may fluctuate less, as the hiring company is responsible for actively procuring work for you. In addition, as a company employee, policies and procedures are often clear and well-developed. It can be beneficial to have expectations clearly defined so a therapist can feel successful in their day to day.

  1. Security

W2 employees are just that - employees of a specific company. This gives this access to things like benefits, career development, PTO, and company perks. Unlike a 1099 contractor who can be terminated for a variety of reasons, W2 employees have the security of a HR department. There are processes in place should a therapist require coaching or remediation prior to termination. When a therapist enters a W2 position with a company, there’s a mutual benefit to developing a long-term relationship. Sharing a vision and commitment to one another can feel rewarding, rather than simply transactional.

  1. Support

Companies that hire employees directly as W2 employees share an invested interest in their growth, success, and happiness at work. Often there are support systems in place to problem solve issues, provide mentorship and coaching, as well as a place to network and collaborate. Some companies may offer professional development, or reimbursement for licensure or dues. 1099 employees are typically responsible for education, training, and any fees associated with their job duties.

Here at Huddle Up, the majority of our providers are W2 employees. We remain committed to our providers; we believe in the quality of their work, and their dedication to our mission and vision.

Interested in working for Huddle Up?