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Is it time for you to hire people into your business? Are you sitting on the fence between whether to use a 1099 contractor model or the W2 employee system for your staff? What are the central differences between them, and which one is better suited for your business goals?
In this podcast snippet from the Group Practice Boss Conference 2025, Andrew Burdette demystifies the W2 model.
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Meet Andrew Burdette
Andrew founded Mindful Counseling PLLC in Asheville, NC shortly after completing his graduate program in clinical mental health counseling. At the start of the pandemic, he pivoted to an online solo practice, and in 2022, began to grow a group practice. He most enjoys helping clients and colleagues identify what ignites their passions and assisting them in creating a life rooted in authenticity. Andrew approaches his business development with alignment in mind and enjoys the integration process connecting the many puzzle pieces and systems required to run a successful practice.
Visit Andrew’s website and Apply to work with him.
Email him at [email protected]
In This Podcast
- Realities about the 1099 model
- Cost effectiveness between 1099 and W2
- You get to create a culture with W2
Realities about the 1099 model
If you are doing 1099 properly, everyone works for themselves and really functionally what you have is a franchise [with] people under your brand name, and functionally they are working independently, doing their own business … They don’t work for you, they work under your umbrella and brand name, but that’s really it. (Andrew Burdette)
There are two central truths to the 1099 model that you will need to be mindful of when it comes to working with this employee structure type:
1 – They don’t work for you; they work for themselves under your business brand umbrella
2 – They are independent contractors, which means that they don’t have a strong incentive to stay in your business if they find better opportunities elsewhere
What this means is that you may have a high turnover rate of clinicians. If you want to build something that lasts and works coherently as a system, the W2 route is best.
Cost effectiveness between 1099 and W2
It may seem on the surface that 1099s are the more inexpensive models to choose, because you only take a pay percentage of their work, and you don’t have to pay them benefits or insurance.
However, due to the turnover rate, you spend way more in the hiring process than you would with W2 employees. You also earn more with W2 employees, and benefits are cheaper to organize for them when you have a larger staff.
[W2s] really aren’t more expensive. If anything, they’re probably a little more affordable over the long term, because you get flexibility around pay strictures and things like that, which you can’t give [with] 1099s. (Andrew Burdette)
Training staff is an investment, so to keep that investment within your business, the W2 model is more effective when it comes to the crucial components of any successful business: to use time and money wisely.
You get to create a culture with W2
One of the central differences between 1099 and W2s is that with the W2 employee model, you can build a culture within your organization, which is not really possible with 1099s.
If you dream of a hands-on, cohesive, and collaborative practice, W2 is the way to go.
Once it’s done and you have the policies laid out, again, everything cruises along. (Andrew Burdette)
Additionally, W2 employees are incentivized to stay because you are providing them with benefits, which is a huge bonus for them.
All this combined, the culture, the pay, the stability, and the benefits, lead to stronger retention and satisfaction when you hire your best-fit employees under the W2 system.
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It’s no surprise 99% of businesses said the value they get for Gusto is worth the price. Here’s the best part: because you’re a listener, you get three months totally free. All you have to do is Click here!
Useful links mentioned in this episode:
- Check out our Practice Academy!
- Sign Up to the Group Practice Boss Conference!
- Visit Andrew’s website and Apply to work with him.
Check out these additional resources:
Therapy Didn’t Work for Anna Runkle | POP 1268
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Meet Joe Sanok
Joe Sanok helps counselors to create thriving practices that are the envy of other counselors. He has helped counselors to grow their businesses by 50-500% and is proud of all the private practice owners who are growing their income, influence, and impact on the world. Click here to explore consulting with Joe.
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