Q - What does it mean to be a contract therapist?
A - As a contract therapist, you are self employed. Your hourly pay is higher, but you are responsible for your own taxes, including self-employment tax that employees do not have to pay.
Q - What does it mean to be an employee therapist?
A - As an employee therapist, you are an employee of Nelson Pediatric Therapy. The company withholds taxes from your paycheck so you don't have to make quarterly tax payments yourself. The company also pays for your Worker's Compensation policy, all of your FUTA and SUTA taxes, and half of your Medicare and FICA taxes. Employees do not pay self-employment tax. As an employee, you will also enjoy a comprehensive series of benefits not available to contract therapists.
Q - Who is paid more, the contract therapist or the employee therapist?
A - The total pay for contract therapists and employee therapists is essentially the same after taking tax payments into consideration. The contract therapist receives a higher hourly rate, but has to pay all of his or her own taxes. The employee therapist receives a lower hourly rate, but the company pays a portion of the taxes. If the employee takes advantage of the 401(k) retirement plan offered by the company, he or she will receive a company contribution in addition to the hourly pay.
Q - When do I get paid?
A - Nelson Pediatric Therapy uses a state-of-the-art secure billing system accessible from our website where therapists can login and submit their billing quickly and easily. You can easily track the number of hours you've worked, download forms and teaching materials, and even write your quarterly progress reports online.
Q - What are the advantages of writing quarterly progress reports online?
A - Nelson Pediatric Therapy provides an online template for your quarterly progress reports, making it easy to write them. Simply fill in the blanks with the proper information. Each report is saved on the website and can be retrieved easily and updated when the next report is due. The website automatically tracks when your next report is due and notifies you of the due date. If you take over a caseload from another therapist who has moved away, the reports from that therapist are available for you to review and update as well.