Considering a Job in a Group Practice? Start by Asking These Questions
If you're exploring employment in a group psychotherapy practice, one topic to clarify during the interview process is the hiring model—specifically, whether clinicians are classified as W-2 employees or 1099 independent contractors.
Here are key questions to ask prospective employers:
Are clinicians hired as W-2 employees or 1099 contractors?
Who is responsible for covering payroll taxes?
How and when are clinicians paid—on a regular schedule or only after insurance reimbursement?
Does the employer provide benefits like healthcare, paid time off, or retirement contributions?
Is compensation influenced by which insurance plans clients carry?
Regardless of whether you choose to apply to work with Lakeside Counseling Center or another practice, we strongly encourage you to be informed about these different hiring models.
Understanding how they affect your income, job stability, and clinical autonomy is essential to making a sustainable and ethical career choice.
Why Lakeside Counseling Center Employs W-2 Clinicians, Not 1099 Contractors
At Lakeside Counseling Center, we believe in building a practice that is both ethical and sustainable—for our clients and our clinicians. When we first started our group practice, we initially followed what some other group practice owners were doing and hired independent contractors (1099s). But it didn’t take long for us to realize that this model wasn’t just problematic—it was fundamentally misaligned with our values and the way mental health services should be delivered.
W-2 vs. 1099 in Group Practice: Why It Matters
The distinction between W-2 employees and 1099 contractors isn’t just administrative—it shapes how a practice operates. Per IRS guidelines, when clinicians are supervised, follow set procedures, and work within a practice where the owner does similar work, they should likely be classified as W-2 employees.
At Lakeside Counseling Center, we recognized this early. Since our owner provides the same services as our clinicians, calling them independent contractors wasn’t justifiable—so we shifted to a W-2 model.
Protecting Clinicians from Financial Risk
1099 contractors shoulder their own taxes, benefits, and financial risk, including delayed payments from insurance. This was evident during the February 2024 Change Healthcare cyberattack, which left many clinicians without income for months.
At Lakeside, our W-2 employees receive consistent, reliable pay, regardless of insurance delays. We take on the financial risk so our clinicians can focus on client care.
Ethical Pay Structures That Center Clients
Tying pay to insurance reimbursement under the 1099 model can create ethical concerns, encouraging clinicians to prioritize higher-paying clients. We avoid this by averaging reimbursement rates and offering a fair hourly wage to ensure equitable care for all clients.
A Commitment to Equity and Access
Our model supports predictable pay, comprehensive benefits, and ethical care delivery. Hiring W-2 employees isn’t just a compliance choice—it’s how we live our values. We invest in our team so they can fully invest in their clients.
Interested in Joining Us?
We’d love to hear from you—submit your resume here: therapy@lakesidecounsel.com