Pretty much what Pam said.
I think payroll taxes will be less than 15%. Here's a link that was the most comprehensive update for 2014 that I found of all the employer's obligations. Remember Unemployment taxes (Federal and State) have ceilings.you only pay on so-many thousands of their wages. http://www.ey.com/Publication/vwLUAssets/EY-US_Employment_Tax_Rates_and_Limi ts_for_2014/$FILE/EY-Payroll-Perspectives-Nov I definitely believe in sliding scales based upon performance. Retail in the nail industry is notoriously small---a few bottles of cuticle oil and lotion seem to be typical. 10% of 6 bucks is not a great incentive. But if you have extensive inventory.gifts and accessories, skin care, hair care, etc, then I would make it 10% on the first $50 per month, 12% on the next, %15.and so forth. I would not pay more than 25%....because there are so many factors: shipping, the cost of pricing and shelving (somebody's time was used), degradation of product that sits and must be trashed, shrinkage (pulled from shelf and used in a service and forgot to reimburse.or walked out!), etc. As for commission..I personally believe that IF this person is an employee.and I am the employer.I should supply the products and pay a lesser commish to start. If it's a newbie and I am having to train and oversee her work, make it right when there are goofs, etc...40%....maybe for a probationary time 60 days..and an evaluation..and if there's progress, a raise. Once it's established this employee is fully functional, she can work toward a goal each week..once her gross service income is somewhat stable at a certain level, (eg. If 3 weeks out of a month she hits her goals for 3 months) then she gets another raise.and a higher standard to work toward. I think this should be laid out and measurable and obtainable. Making the percentage a whim of the owner is not motivating. I think the max should be 60% for a senior tech who needs no supervision.and once her weekly goals are stable at that level, give her the chance to booth rent. I never liked having a ceiling on what I could make. I worked for one day spa bringing in 1200-1500 per week but I could only make $700? I didn't feel the product costs and overhead for my work were anywhere near $400-$700 per week they were making off the sweat of my back. I believe in writing things out.having a policy book. When there are questions that come up."What does the policy book say?" I believe you should enforce the policies evenly. Always. And don't worry about hiring a Mini Me...it's good to have different personalities that can mesh. Some people will float to her, and some will float from her to you. I think you should make it clear from the beginning that clients are free to shift between you. You should make it a point of letting that happen..have her do your repairs.you do hers.so clients get used to either of you. Yes, Magz.you will have die hards that would rather walk on their lips than give up their appointments with you.but there will be some that will be relieved that there is now a little breathing room in the scheduling.and they will still get to be in your sublime presence! Hit us up with your questions.you know we've got your back! Karen From: [email protected] [mailto:[email protected]] On Behalf Of Maggie in Visalia Sent: Friday, March 14, 2014 1:05 AM To: 1Nail Tech list Subject: NailTech:: My First Henchman So it looks (gulp) like I've hired an employee. HELP!!!! What am I doing? I was planning on doing this about a year from now, but as it currently stands I have absolutely zero openings after 5 p.m. FOREVER-- until somebody quits or dies. I'm turning away business daily and that doesn't include how many people may be unable to book online that I never even know about. It's time. I'm kinda, sorta aware of how much an employee will cost me in the way of payroll taxes, disability, unemployment, worker's comp, etc, etc, and so on. I'm guestimating about 20% of what I pay the employee. All current research indicates it should be closer to 15%. ???? Our profession seems to fall into the exemption area for paying straight commission. I'd like to be able to pay her hourly, but that's not going to happen just yet. So I've been trying to work on a sliding scale commission structure from 50/50 to 60/40 to 70/30. Now. I know there are some of y'all out there who've been down the employee path... I need information. I need guidance. I need comfort. I need a stiff drink. What am I getting myself into? What am I not paying attention to? What's going to bite me in the butt later? What am I missing? Mostly-- can anyone help me with my commission structure? My goal is to make this (eventually) more profitable than renting the booth out at the going rate of $100-$125 a week. Naturally-- that won't happen till my new henchman is more established. I'm not JUST about the money, I want to groom a good nail tech who will be a valuable asset to not just my own salon, but our industry through out her future as a tech. But dang! If this isn't just scary as all heck. Maggie Franklin: Owner & Artist, The Art of Nailz <http://artofnailz.info/> , Visalia CA "Visionary rebel dreamer; obviously way ahead of my time." Maggie Rants [and Raves]@Nails Magazine <http://blogs.nailsmag.com/maggie/> Facebook <http://www.facebook.com/onykophile> -- You received this message because you are subscribed to the Google Groups "NailTech" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To post to this group, send email to [email protected]. Visit this group at http://groups.google.com/group/nailtech. For more options, visit https://groups.google.com/d/optout. -- You received this message because you are subscribed to the Google Groups "NailTech" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To post to this group, send email to [email protected]. Visit this group at http://groups.google.com/group/nailtech. For more options, visit https://groups.google.com/d/optout.
