MENU
SEARCHI suspect that many nail technicians who classify themselves as “independent contractors” may not be at all. I urge salon owners and booth renters to take a closer look at their situation before the IRS decides to take a closer look.
I suspect that many nail technicians who classify themselves as “independent contractors” may not be at all. I urge salon owners and booth renters to take a closer look at their situation before the IRS decides to take a closer look.
If you have classified your situation incorrectly (and filed your return under the wrong classification), you could face back taxes and penalties it you are audited.
Contrary to popular belief, just because a person is paid by commission doesn’t automatically make her an independent contractor.
The IRS provides 20 categories by which it judges the employer/employee (or salon owner/booth renter) relationship. The amount of control a salon owner exerts over a worker tells whether that person is an employee or an independent contractor. If you must abide by the salon’s rules and regulations of where, when, and how to work, you are an employee. If your hours are set by the salon owner or manager, and you have no control over them, you are an employee.
For example, let’s say you rent a booth, buy all your own supplies, and do your own advertising. You split your receipts 60/40 with the salon owner, and you’re paid out of the central register once a week. You are required to work certain hours, take walk-ins, and maintain a dress code. Although you generally work without direct supervision, the salon owner can dismiss you if you do something that harms her business. In this scenario, you are an employee.
On the other hand, let’s say you provide your own supplies, and when a client pays for a service, you keep your share and put your earnings to the owner, you set your own hours, and, if necessary, you can even hire an assistant. Although the salon owner can terminate your employment agreement, she doesn’t have enough direction or control to be considered an employer by the IRS. In this scenario, you are an independent contractor.
The word “independent” may be the key to determining your status, as the classification lies in determining which party in the relationship has control. If, by and large, you control your schedule, prices, and supplies, you are probably an independent contractor. But if you are the one being controlled, you are more likely an employee.
Tax laws are complicated and confusing, but the consequences of not adhering to them can be very painful and costly. And, since the IRS doesn’t get around to auditing returns until years after they’ve been filed, you could wind up owing years’ worth of interest on an incorrectly filed return.
I urge nail technicians and salon owners alike to talk to an IRS counselor, an accountant, or an attorney to be sure you are filing correctly. You can also contact your local IRS office and ask for an SS-8 form, which is titled “Information for Use in Determining Whether a Worker Is an Employee for Purposes of Federal Employee for Purpose of Federal Employment Taxes and Income Tax Withholding.” (At least the IRS is very clear when naming forms!)
Square data shows that regular customers tip 11% higher and are shared across 32% of businesses in the same ZIP code, driving thousands of dollars in additional revenue per connection.
When Bowie Lau and Jeffrey Ching opened JBW Jeffrey Ching Salon in 2011, they weren’t just launching another luxury hair destination—they were building a business rooted in passion, artistry, and thoughtful growth.
Sponsored by Amex
Inside the Systems That Power an Elevated Salon Experience From seamless online booking to a team-first culture, J Gold Salon in Atlanta offers more than great hair—it delivers consistent, high-touch service with the help of partners like Boulevard and American Express.
Sponsored by Amex
Want to grow your career as a beauty professional? K18 Sales Manager Sabrina Sanborn shares advice on networking, mentorship, and self-advocacy—from attending hair shows to finding the right guidance to reach your goals.
A combination of clear policies, effective communication, and strong client relationships has helped me create a more reliable and efficient booking system.
Founded by Cleveland serial entrepreneur Shaura Rodgers, Nailtorious has grown to include a nail supply megastore, training facilities, and retail line for nail techs.
This period after the holidays can bring on a huge lull for hairstylists. We asked Cosmo Prof's team of professionals to offer their best advice on how to deal with the January-February slow period.
Key highlights include a push toward inclusive spaces for all abilities, an emphasis on maximizing livable square footage, and a continued love for modern farmhouse exteriors.
The busy holiday season is here, and with it comes jam-packed days, last-minute client requests and booming retail sales. For many salon owners, the highlight of the season is Small Business Saturday® (SBS). This year on Saturday, November 30, consumers can take their shopping into the small businesses in their communities.
Sponsored by Amex
Want to become savvy about your personal finances, but don't quite know where to start? Anna Manukyan identifies six important concepts for building a strong financial foundation.
Salon owner Nuri Yurt had a dream of owning a salon on New York City’s Madison Avenue. "Through perseverance, hard work and stellar customer service, he and partner John Kaygisiz founded Toka Salon in 2007.
Sponsored by Amex
This guide is your one-stop shop for a plethora of technology tools, software and services created to keep your salon or spa thriving.
Anna Manukyan shares a breakdown of what different types of financial accounts should be used for.
Vagaro has consistently been at the forefront of salon software technology, helping businesses be more efficient, create more effective communication, and even improve company culture. Now, Connect by Vagaro, the platform’s two-way communication capability, and Vagaro’s new generative AI tools are giving owners new opportunities to grow and expand.
Sponsored by Vagaro
Young Nails' Greg, Habib, and Tracey discuss whether getting too close to clients can damage your business.
This list of watch-outs from @jodydoesjels prompted us to reach out to her and learn more. We had already fallen for her hand-painted designs and now we wanted to know more about this list she created to help clients decide if she was the nail tech for them.
Education is necessary for beauty professionals to maintain their cosmetology licenses, and paying for that education can be burdensome, but it doesn't have to be. Understand which education tax credits can help you offset those costs.
