06/26/2026
The 1099 issue is one of the most misunderstood topics in the massage industry.
A 1099 is not simply a different way to pay a massage therapist. A legitimate independent contractor is running their own business. That means they typically set their own rates, market themselves, collect payment from clients, pay their own business expenses, and often rent treatment space.
If the business controls the schedule, sets the prices, books the clients, provides the equipment, and directs how the work is done, that may not be a true independent contractor relationship. Simply issuing a 1099 doesn’t automatically make someone self-employed.
Many therapists focus on the higher percentage split but overlook taxes. As a W-2 employee, you pay 7.65% in payroll taxes (Social Security and Medicare), while your employer pays the other 7.65%. As a 1099 independent contractor, you’re responsible for the entire 15.3% self-employment tax, in addition to your regular federal and state income taxes.
On top of that, independent contractors pay their own liability insurance, retirement contributions, health insurance, supplies, continuing education, and other business expenses. A higher percentage split doesn’t automatically mean more money in your pocket.
Every arrangement should comply with state and federal laws, but therapists should understand the financial and legal differences before agreeing to any compensation model. Education is far more valuable than believing the myth that “1099 always pays better.”
