If you’re a licensed therapist in Illinois—whether you’re an LCPC, LCSW, LMFT, or psychologist—you’ve likely come across both 1099 contractor and W-2 employee roles while job searching. These models differ greatly, and knowing the legal and financial implications in Illinois can help you make an informed, sustainable career decision.
As a 1099 contractor, you’re considered self-employed. That means you’re responsible for tracking and paying your own taxes, securing liability insurance, managing your own benefits, and handling billing and compliance. While this model can offer more autonomy, in Illinois, 1099 therapists must navigate complex IC agreements and risk being misclassified—something the Illinois Department of Employment Security (IDES) has been increasingly scrutinizing in healthcare. Many clinicians discover too late that they’re operating without full legal protection or consistent support. It’s almost important to note that pre-licensed clinicians (such as LPCs, LSWs, or ALMFTs) should never be classified as 1099 contractors as they require supervision, and cannot operate fully independently.
By contrast, a W-2 employment model typically offers built-in protections that therapists increasingly prefer. W-2 roles provide steady pay, employer-covered payroll taxes, access to healthcare and retirement plans, and compliance support in line with Illinois-specific labor laws. Additionally, W-2 employees benefit from stronger clinical oversight, paid documentation time, and protection under worker compensation laws. For therapists wanting stability, ethical support, and room to grow without burning out, W-2 roles offer a better foundation.
At our group practice, we’re committed to your professional growth and your wellbeing. Our W-2 positions offer competitive pay, benefits, and a collaborative clinical culture that keeps client care and therapist health at the center. If you’re looking for a role where you can thrive—not just survive—we’d love to meet you.
