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Obama anounced that the IRS will look carefully into certain businesses and how they are dealing with 1099 (independent contractors) and W2...
This will affect how hair salons, etc...have been conducting their businesses.
Most of them are having their workers as 1099 while they have to be W2 workers and have the employers have to pay taxes and soon health care for their workers.
So this will be very hard on small businesses although Obama is right that most bhair stylist aren't 1099 but W2 employees...so many audits will take place and much back taxes will need to be paid which will mean many hair salons to be closed or have to change how they dealt with this.
This will probable also mean higher prices for the consumer
I have no sympathy for salons that were evading tax laws by willfully classifying workers as 1099 that should have been W2. The IRS has an easy to understand webpage that explains how to make the determination, so there really is no innocent excuse for this. How many stylists have been forced to pay taxes as though they were self-employed while they are clearly an employee of the salon? If becoming compliant with the law causes them to go out of business it is their own fault for setting up their business in a shady way.
1099 is nothing more than a huge tax scam for owners and employees.You will get caught and have to pay big money and fines one day.Nothing more than cheap owners who don't want to pay up.Biggest losers are the stylists.You will all get busted.W2 only salons are the way to go.The other just says the owner is not a business person.Get out while you can!
actually, a lot of salons you have to buy/rent a chair at the salon. You are then your own boss and can charge your own prices at the salon. But you still work at the salon. You should be a 1099 employee then.
actually, a lot of salons you have to buy/rent a chair at the salon. You are then your own boss and can charge your own prices at the salon. But you still work at the salon. You should be a 1099 employee then.
Oh, then THAT explains why, on some web sites, there are different prices for different stylists and on others there is a uniform price for services. One one, the stylists are operating as their own business and in the other, they are considered employees (or SHOULD be). Thank you.
actually, a lot of salons you have to buy/rent a chair at the salon. You are then your own boss and can charge your own prices at the salon. But you still work at the salon. You should be a 1099 employee then.
Right. But when they tell you what hours and days to work, and what to wear to work, you are not running your own business, you are an employee. About time they investigated this scam.
I own 2 salons and all of our stylist are W2. And like any business that pays taxes it it a constant struggle to make ends meet. Fortunatly for us we play by the rules and are growing infact we are probably the largest salon in our city. But it is not easy and I agree that everyone should either comply or be shut down so that we are all on the same playing field. And yes its just a matter of time before the IRS realalizes how much money they are loosing and starts auditing these people.
I know in some hair and nail shops around here,there are teens who help wash clients hair and paint nails.Usually,they are the owner's kids.
Often,the parents and kids are immigrants.
I'm not sure how that would work
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