An employee is a worker who is on payroll, for whom payroll taxes and insurances are paid (among other expenses), and who is subject to certain legal obligations and privileges (in contrast to a booth renter, who is technically a “tenant” of the salon owner).
April 1, 2008
Spin the Wheel: Playing the Classification Game — In the salon industry, workers most often operate in one of three ways: as employees, booth renters, or independent contractors. But for years many salons have incorrectly labeled their independent contractors and may have put themselves at risk of having the IRS reclassify their workers. Find out if you're doing things correctly or if you're just spinning the wheel and seeing where it lands.