Well, I have paid "booth rent" on a commission basis... Like 65-70%...was mine... BUT the terminolgy matters here.
I paid the salon owner the 30-35% --which was my booth rent. But, at the same time, I contracted an agreement, (albeit verbally), that I paid 35% of all SALES, (which includes SERVICES... NOT TIPS or RETAIL), up to whatever boothrent amount would be--- say, for argument's sake: $100. So, in other words, if the 35% worked out to be more than $100, $100 (booth rent) is all I paid. This type agreement works for someone just starting in a new location and trying to get established... And you can still retain IC description. HOWEVER... If the salon owner is collecting ALL monies and issuing a check to said nail tech-- whether it is an hourly rate or some agreed-upon percentage, that tech is STILL an employee! And to color it any other way is illegal-- depending on state law, of course..... JMHO Melody Montgomery Sent from my BlackBerry® wireless device from U.S. Cellular -----Original Message----- From: Diana Bonn <[email protected]> Date: Sun, 05 Jul 2009 12:43:50 To: <[email protected]> Subject: NailTech:: Re: taxes/ independent contractor WOW, Lynnette, that is a good question. Well we do know that the owner will write that one off, because the owner is paying the receptionist. So got that one. I am thinking, we don't have the details, but sounds like the owner will be collecting the service dollars, paying the i/c a check and probably a line item of subtracting the cost of the receptionist. The other I/C's, not new one, I wonder if they write a check to the owners or a check is cut. If the i/c's write a check, they would write the receptionist fee off on their taxes. But in this case of a new I/C, them paying her a comm and a receptionist fee, I am guessing they will cut her a check. How would the new I/C write this receptionist fee off if she never received the service dollar? Actually if you think about it, if she is receiving a commission of 65% plus the fee, then you could think of it not as 65% commission, but a lower percentage, maybe 63 or 64% commission. In other words, we will pay you 65% commission but you have to pay a receptionist fee, or we will pay you 63% commission and that includes a receptionist fee!! (numbers are estimates guys) Wow, mind boggling, I just don't know. I would guess no she can't write this off, but I am not an accountant. Good question. diana from indiana At 11:14 AM 7/5/2009, you wrote: >Diana, >Great points as usual! You made me think of this-- if the owner >takes $100 a month to pay the receptionist, who is claiming that? >How does THAT work? >In this techs situation, there are way too many red flags...... >Buenos dias, >Lynnette >Sent via BlackBerry from T-Mobile --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "NailTech" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/NailTech?hl=en -~----------~----~----~----~------~----~------~--~---
