It is no surprise the massage industry got hit hard during this 2020 Covid 19 economic disaster. A large number of Licensed Massage Therapists are either self-employed or subcontractors, therefore putting them in an unimaginable position questioning if a career in massage is even worth continuing.
A massage therapist is not an essential worker; therefore, they were mandated to shut down just like most of the country. The first two weeks we did not take it as serious as we should have, in the back of our minds we were confident that the business could sustain the loss of income for a few weeks and it's business as usual soon after. Boy were we wrong, as the rest of the country can relate.
In the massage industry is very common that we work as either self-employed or subcontractors. It is rare that a small studio or spa hire massage therapists or estheticians as employees because the reality is they want to save on the 7.65% wage contribution to FICA on behalf of the person or just never got the education on how simple it is to hire a payroll company to streamline the process for the business. It is no secret that its easier for a small business to use subcontractors. While most massage therapists start off as a sole operators, a lot quickly realize the need to bring in a subcontractor or two to keep up with the demands or requests. Fast forward, you then can employ individuals including yourself to run the business. At least that what the idea is if you want to grow, right?
The idea of transitioning from subcontractors to employees in a business is never made lightly. Its easy and convenient the way things run with subcontractors and quite frankly the business makes more money. If you have a small but growing crew, Why change something that is working? Be encouraged to know that surrounding yourself with a network of professionals to guide in the right direction at this moment in time during the economic disaster could have made all the difference. That decision of subcontractors versus employees hits home differently having to face a different outcome during the covid 19 economic disaster.
If you are one of the lucky small businesses that got approved for the SBA 10,000 advance and also the Payroll Protection Program and all employees are now collecting unemployment benefits, all because a few years ago say you sat down to have coffee with a Human Resource professional, a Payroll Consultant, a Bookkeeper or accountant to get the ball rolling you are truly blessed and able to have breathing room now because for the ones that are subcontractors as you see from the department of labor statistics, most self employed individuals were left out of the benefits.
As a subcontractor during this time you would have attempted to file unemployment and been denied, would have not qualified for the Payroll Protection Program and would barely been considered for the SBA disaster loan. You and your subcontractors would have been in the same predicament as most of the massage therapists in the country.
Professional advice to protect your business is key to survive such a things as we are living today. That outcome looks very sad right now, and sadly we hear and read every day of a fellow practitioner giving up their studio, practice and their dream because it is impossible to keep open to wait things out. It would mean closing the doors to the business that you worked so hard to build because it would be impossible to come up with the rent and pay the utilities until The Department of Public Health clears the industry to reopen.
Unfortunately, not many in the industry were lucky to have the right mentoring, guidance or education and network to help prepare ahead of time and right now are suffering the consequences. Being honest it's been the norm in our industry to work as a subcontractor and now we face the worst consequence of that unforeseeable situation.
There is more freedom in working for yourself, work when you want and how much you want and make make more money, its perfect! On the other hand, the business owner also makes more money so it's a win-win for all, or at least we thought it was that way until a disaster like Covid 19 strikes.
If you are in the wellness field or any industry similar, be encouraged to find a small local payroll company to handle your payroll. Did you know that for as little as under one hundred dollars per month you can protect yourself and your staff during economic challenges like we are facing today? Think of it this way, do you make more than one hundred dollars in tips per month? If the answer is yes, then you can afford to prioritize the future of your business.
Learn from our current situation and make the necessary changes to ensure you are in a better position moving forward.
A Massage Spot