ok now isn't that another one of the 10 things tha the IRS uses to determine whether one is an employee or not...the IC/boothrenter MUST handle all their own money. However...come to think of it...when I worked as a Pampered Chef (doing the home parties) you sent all money into the company and they sent your part back to you.....hmmm...(Diana had mentioned think Avon, mary Kay etc....) Whe I first started working in Florida...I was an "unknowing" IC LOL... (I was paid 50/50) they never took taxes out...I thought I was getting something for nothing but come January they gave a ..is it a 1099...a form saying how much I had earned ...then I realized I had to pay my own taxes...luckily...the reason I didn't stay there long was because it was so slow...so there wasn't much to pay. They bought all supplies etc.... yes I know ...i should have known better....but it was a long time ago! LOL...
Pati When life gives you a hundred reasons to cry... Show life that you have a thousand reasons to smile.... -----Original Message----- From: [email protected] To: NailTech Group <[email protected]> Sent: Sun, Jul 5, 2009 3:03 pm Subject: NailTech:: Re: taxes/ independent contractor Well, I have paid "booth rent" on a commission basis... Like 65-70%...was ine... BUT the terminolgy matters here. I paid the salon owner the 30-35% --which was my booth rent. But, at the same ime, I contracted an agreement, (albeit verbally), that I paid 35% of all AL ES, (which includes SERVICES... NOT TIPS or RETAIL), up to whatever boothrent mount would be--- say, for argument's sake: $100. So, in other words, if the 5% 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 o 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 ech-- whether it is an hourly rate or some agreed-upon percentage, that tech is TILL an employee! And to color it any other way is illegal-- depending on state law, of ourse..... JMHO Melody Montgomery ent from my BlackBerry® wireless device from U.S. Cellular -----Original Message----- rom: Diana Bonn <[email protected]> Date: Sun, 05 Jul 2009 12:43:50 o: <[email protected]> ubject: 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 wner is paying the receptionist. So got that one. I am thinking, we don't have the details, but sounds like the owner ill be collecting the service dollars, paying the i/c a check and robably 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 wners or a check is cut. If the i/c's write a check, they would rite the receptionist fee off on their taxes. But in this case of a new I/C, them paying h er a comm and a eceptionist fee, I am guessing they will cut her a check. How would he new I/C write this receptionist fee off if she never received the ervice dollar? Actually if you think about it, if she is receiving a commission of 5% plus the fee, then you could think of it not as 65% commission, ut a lower percentage, maybe 63 or 64% commission. In other words, we will pay you 65% commission but you have to pay a eceptionist fee, or we will pay you 63% commission and that includes receptionist fee!! (numbers are estimates guys) Wow, mind boggling, I just don't know. I would guess no she can't rite this off, but I am not an accountant. Good question. diana from indiana t 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 -~--~---------~--~----~------------~-------~--~----~ ou received this message because you are subscribed to the Google Groups NailTech" group. o post to this group, send email to [email protected] o unsubscribe from this group, send email to [email protected] or more options, visit this group at http://groups.google.com/group/NailTech?hl=en ~----------~----~----~----~------~----~------~--~--- --~--~---------~--~----~------------~-------~--~----~ 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 -~----------~----~----~----~------~----~------~--~---
