Flat Rate vs. Hourly: How to Price Your Services as an Independent School Psychologist Contracting with School Districts
By Juliana Ramirez, EdS NCSP ABSNP
Owner and Founder of PERA Services®
Independent School Psychology
Private Practice for School Psychologist
Independent Contractors
School Psychologists as 1099s
IEE’s
Setting fees as school psychologist
Setting Your Fees as an Independent Contractor: What Every School Psychologist Should Know
If you’re a school psychologist looking to work independently as a contractor, one of the first questions that comes to mind is, How much should I charge for my services? It’s a question that many of us struggle with, especially when transitioning from the traditional school system to independent practice.
Setting your fees isn’t just about picking a number; it’s about understanding your worth, the value you bring to the table, and the unique nature of contracting work.
As a contractor, you offer specialized services, which means you have more freedom—but also more risk. You’re responsible for your time, materials, and assets, and you’re not paid fringe benefits like health insurance or retirement plans. So, it’s important to charge rates that reflect these realities. In this post, we’ll dive into how to set your fees as an independent contractor, the options you have, and why it’s crucial to avoid being treated—or paid—like an employee.
You’re Not an Employee: Charge Accordingly
First things first: when you’re working as a contractor, you’re not an employee. This means you should avoid being treated—or paid—like one. As a contractor, you’re in control of your schedule, your materials, and the way you conduct business. You’re not bound by the same expectations or limitations as someone on payroll. But with this freedom comes risk. Contractors typically don’t receive fringe benefits like healthcare or retirement contributions, and they assume more financial responsibility. This is why contractors can charge higher rates—to account for the additional risks and expenses that come with independence.
Flat Rate vs. Hourly Fees: What’s Best for School Psychologists?
When it comes to setting your fees, you have a few options. Some school psychologists charge an hourly or even daily fee for their services. While this might seem appealing at first glance, it can create unnecessary complications. Billing errors, tracking hours, and fluctuating pay based on how long a task takes can all lead to headaches down the road.
That’s why I’m a big fan of the evaluation flat rate.
By charging a flat fee per evaluation, you take the guesswork out of billing and reduce the likelihood of invoice errors. A flat rate also helps you limit your liability—you know exactly how much you’re getting paid, no matter how long the evaluation takes. Plus, districts tend to appreciate the clarity and simplicity of flat-rate billing.
Not Sure What to Charge? Use IEE Rates as a Baseline
One of the most common questions I get is, How do I figure out what to charge? My advice: use district IEE (Independent Educational Evaluation) rates as a baseline. These rates are what districts typically pay for independent evaluations, so they’re a good indicator of what schools are willing to spend on high-quality, specialized services. This gives you a clear, realistic starting point when setting your rates.
Consider Your Market and Location
Another key factor when setting your fees is your location. The rates for school psychologists can vary significantly depending on where you’re working. School psychologists in California, for example, may charge higher rates than those in the South. It’s crucial to do some market research and consider what other contractors in your area are charging. You want to ensure that your rates are competitive while also reflecting the value and expertise you bring to the table.
Protect Yourself: Limit Your Liability
One of the main reasons I advocate for flat-rate billing is because it helps limit your liability. As a contractor, you want to make sure you’re in control of the terms of your work. Your contract should clearly state that you’re not an employee, which ensures that you’re not expected to follow the same rules and protocols that district employees adhere to. This also protects you from liability issues that might arise from being treated like an employee.
Want more support as you transition to becoming an independent contractor?
Independent work isn’t just about working alone. If you are looking at joining a community of like-minded professionals who are also eager to evolve in the field, connect with others, and grow together whether as contractors or private practitioners, then consider my course. As an independent school psychologist, you’ll have the opportunity to collaborate with peers, find mentorship, and be part of a vibrant community that shares resources, knowledge, and support. If you are ready to take the leap, check out my comprehensive course, Increasing Your Independence: Making the Big LEAP from Public to Independent School Psychologist. This course is designed to equip you with the tools, knowledge, and support you need to succeed in independent practice. Don’t wait to start your journey to independence—your success story is waiting to be written!
If you’re ready to take the next step in building your independent practice, I highly recommend checking out The School Contract Code, my 2-hour workshop that teaches you how to pitch your services to school districts as a contractor. This workshop is packed with practical advice and strategies for pricing your services, creating contracts, and securing long-term clients.
If you’re ready to explore the path to independence and achieve a better work-life balance, I invite you to Download my free guidebook, The Guidebook: Action Steps to Starting Your Independent Business in School Psychology, which provides a step-by-step plan to help you get started in business.
Let’s Connect
I’d love to hear from you and support your journey. If you’re a DIY type school psych and are ready to start your journey to independent practice, I’ve got just the thing for you.
And if you’re looking for more in-depth support, schedule a 1:1 coaching call with me. Together, we can dive deeper into your unique situation and tailor a plan specifically for you. Trust me, this could be the start of something amazing!
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About Juliana
Juliana is a bilingual school psychologist in Independent Practice and the owner and founder of PERA Services Inc. Her business supports school districts in the state of Ohio with the evaluation of bilingual learners for Special Education. She also coaches and mentors school psychologists wanting to become independent and start a business. To learn more about her business and Juliana visit www.peraserivcesinc.com
