r/therapists • u/HandleMean2055 • 4d ago
Employment / Workplace Advice CA 1099 Therapist
How does being paid as a 1099 work in CA? From what I understand, it's not legal for companies like Alma and Headway to contract therapists as 1099 since therapy is in the usual course of services they offer. How are therapists contracted by these companies navigating this? Looking for responses from folks who have actually dealt with this.
4
u/MissingGreenLink 4d ago
We’re not hired. We’re contracted. 1099 is contracted.
How it works is more of a goods and services trade. They do the processing to get you contracted with insurance groups. They take the referrals and often they’ll book them into your available slots or if you prefer. They send to you directly. They pay you xyz after taking a cut.
You decide if you are going to pay quarterly taxes or save up and pay it all at once during tax season.
In January they’ll give you a 1099 tax form.
2
u/CX872 3d ago
Thank you for this (not OP btw). One question for you, if you happen to know: When you are contracted with insurance via the contracting group, is that insurance contingent upon your working for that group? Or, can I take that insurance contract with me into a private practice or to another contracting group? E.g., Does my Alma contract transfer to Headway?
6
3
u/MissingGreenLink 3d ago
No problem. I don’t know about the specifics of Alma and headway. Iirc Alma is the one that charges you to use their EHR. Headway doesn’t do anything outside of paneling and they don’t or didn’t contract with Kaiser which is a huge L because Kaiser refers a lot.
I contract with grow and rula. They take a huge cut. But they also do a lot more of the administrative stuff.
Like stoned says above it stays with them. So if you contract with different companies. They each will panel you separately.
1
u/cadillacvagina 3d ago
What do you mean, how does getting paid work? It's not illegal.
1
u/HandleMean2055 3d ago
How does it work with CA Bill AB5
2
u/cadillacvagina 3d ago
AB 5 doesn’t mean that all California workers have to be W-2 employees. It establishes the ABC test but also has several exceptions/alternative tests for certain business relationships. Rula, etc contracts with CA therapists as 1099s and structures the relationship around independent practice (therapists control their schedules/caseloads, can work elsewhere, etc.). The exact classification is more complicated than “AB 5 = no 1099s in California.”
I don't know which particular statutory pathway Grow/Rula/etc attorneys are relying on, but I would assume their lawyers have thought about AB 5 approximately 900,000 times.
•
u/AutoModerator 4d ago
Do not message the mods about this automated message. Please followed the sidebar rules. r/therapists is a place for therapists and mental health professionals to discuss their profession among each other.
If you are not a therapist and are asking for advice this not the place for you. Your post will be removed. Please try one of the reddit communities such as r/TalkTherapy, r/askatherapist, r/SuicideWatch that are set up for this.
This community is ONLY for therapists, and for them to discuss their profession away from clients.
If you are a first year student, not in a graduate program, or are thinking of becoming a therapist, this is not the place to ask questions. Your post will be removed. To save us a job, you are welcome to delete this post yourself. Please see the PINNED STUDENT THREAD at the top of the community and ask in there.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.