
Can You Hire a 1099 Therapist for Your Group Practice? W-2 Rules and Costs with Lauren Phillips [Ep 189]
Can you hire a 1099 therapist just because it seems simpler and cheaper than putting someone on payroll? If you're growing a group practice, that assumption is worth questioning before you offer someone a contract. In today's episode, I'm joined by Lauren Phillips, accountant and owner of Private Practice CPA, to unpack the difference between a 1099 contractor and a W-2 employee. We talk about what your schedules, rates, and intake process reveal about the working relationship, why a signed agreement isn't the whole story, and where supervision adds another layer. Then we get into the money. Covering a clinician's pay is only part of what makes a hire financially viable. Lauren explains the other costs to plan for while I share why being able to fill your own caseload doesn't automatically mean you can fill someone else's. Already wondering whether you've classified someone incorrectly? We also discuss a possible path to correcting it. You'll leave with clearer questions to bring to your accountant before your next hire or your next payroll decision. Topics covered on Hiring a 1099 Therapist: The day-to-day details that matter more than a signed contractor agreement What a W-2 clinician can cost beyond their pay, including state-specific requirements The caseload, overhead, and cash reserves to consider before committing to a hire Why pre-licensed clinicians and supervision need a closer look before using a 1099 What the IRS Voluntary Classification Settlement Program may offer practice owners who've misclassified clinicians When getting help with the numbers can reveal that your practice isn't ready to hire yet Resources from this episode: Book a free discovery call with Private Practice CPA . As a Bad Therapist Show listener, you’ll receive free 2026 bookkeeping catch-up when you sign up before December 1st. Connect with Felicia: Get my freebie & join the email list: The Magic Sheets Instagram: @the_bad_therapist Website: www.thebadtherapist.coach Quote: “If the math doesn't work, change the pay structure, not the classification.” - Lauren Phillips

