Federal Tax Payments

Federal taxes as a self employed individual and for a business operate differently then other employment arrangements. You will pay your typical percentage of tax withholding plus an additional self employment tax. Self employment tax is currently about 15%. The rate consists of two parts: 12% for social security (old-age, survivors, and disability insurance) and 3% for Medicare (hospital insurance). Essentially self employment tax is the amount a company pays on your behalf when you work for them. Since you are now self employed, you are responsible for both chunks of the payment. Depending on how you established your practice as a legal entity alters how the business is taxed. Remember that the legislators of the country reform tax law often and your tax liability may change with new laws.

Consider having an CPA in your community complete your taxes rather than an online service. This can maximize your deductions.
Keep accurate logs and books throughout the year for income and expenses in the business.
Weigh the pros and cons of how you employee more staff considering tax liability as well (1099 vs W2).
Set aside a pre set percentage possibly as high as 40% to pay your federal taxes at the end of the year.

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Specializing Your Practice

Specializing your practice to focus on one or two diagnosis classifications can help to set you apart from your peers. It also allows you to narrow down the field of CEU training offerings and stay up to date on the latest research and techniques for treatment of these diagnoses. Many clients will choose treatment for a particular challenge from a specialist as opposed to a general practitioner. Consider these points as you think about specializing your practice What populations do you enjoy working with? Which populations are you most effective with? Do you have a passion for treating one classification of clients? Where will you refer clients that are outside of your scope of practice (remember to offer clients with several referral sources) Is there a missing niche in the market that needs to be filled with specialized services?

Continuing Education Credits (CEUs)

Continuing education credits are required to maintain your mental health license (LCSW, LPC, and LMFT). Consider using your mandated CEUs to specialize in the populations you want to serve. This approach will speed you along your path of specialization and allows you to complete your renewal requirements. In Wyoming, clinicians currently need 45 continuing education hours for every two years this typically renews on their birthday. There are many ways to earn the credits you need without breaking the bank. Local trainings offered by companies such as PESI Online training many offer unlimited CEUs for a fixed price Webinars National conferences Travel to trainings offered in other cities (tax deduction for private practices)

Mental Health Practice Support

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