AMTA Business and Legal Practices 2 — Questions and Answers
Question 1: When a massage therapist hires employees, which federal form must new employees complete for income tax withholding purposes?
- Form 1099-NEC
- Form W-4 (Correct answer)
- Form I-9
- Form SS-4
Correct answer: Form W-4
Form W-4 (Employee's Withholding Certificate) is completed by new employees to tell the employer how much federal income tax to withhold from paychecks.
Question 2: Which business structure provides the MOST personal liability protection for a sole massage therapist?
- Sole proprietorship
- General partnership
- Limited Liability Company (LLC) (Correct answer)
- DBA (Doing Business As)
Correct answer: Limited Liability Company (LLC)
An LLC separates personal assets from business liabilities, offering personal liability protection while maintaining flexibility for a solo practitioner.
Question 3: OSHA's Bloodborne Pathogen Standard requires massage therapists to:
- Perform blood tests on all new clients
- Use standard precautions and have an exposure control plan when blood or body fluid exposure is possible (Correct answer)
- Wear surgical gloves during every session
- Refuse service to clients with communicable diseases
Correct answer: Use standard precautions and have an exposure control plan when blood or body fluid exposure is possible
OSHA requires employers to implement standard precautions and maintain an exposure control plan to protect workers from bloodborne pathogens.
Question 4: A non-compete agreement signed by a massage employee MOST commonly restricts the employee from:
- Maintaining their professional license
- Practicing massage within a defined geographic area and time period after leaving the employer (Correct answer)
- Joining a professional association
- Continuing their education
Correct answer: Practicing massage within a defined geographic area and time period after leaving the employer
Non-compete agreements typically prevent former employees from competing within a specified area and timeframe, designed to protect the employer's client base.
Question 5: Under ADA (Americans with Disabilities Act), a massage therapy business with 15 or more employees must:
- Offer reduced rates to all disabled clients
- Provide reasonable accommodations for employees with disabilities (Correct answer)
- Install a lift in all treatment rooms
- Hire a minimum percentage of disabled employees
Correct answer: Provide reasonable accommodations for employees with disabilities
The ADA requires employers with 15 or more employees to make reasonable accommodations for qualified employees with disabilities, unless it causes undue hardship.
Question 6: The primary purpose of maintaining accurate session notes and business records is:
- To impress clients with professionalism
- To meet legal, ethical, and insurance requirements and protect both client and therapist (Correct answer)
- To qualify for AMTA membership discounts
- To advertise the practice on social media
Correct answer: To meet legal, ethical, and insurance requirements and protect both client and therapist
Accurate records protect the therapist legally, fulfill ethical obligations, support insurance billing, and ensure continuity of client care.
AMTA Business and Legal Practices 2
When a massage therapist hires employees, which federal form must new employees complete for income tax withholding purposes?