Independent Contracting
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Replies to This Discussion
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Permalink Reply by Susan Ferguson on
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I pay a flat monthly rent. I supply absolutely everything. What is the monthly amount she wants to charge you? If you think about it.... example: rent $500/mo and say you only do $1000 per month in services ( low est.) Your monthly amount to her would be $600 - 60% of your months gross receipts plus all your other expenses...ouch!
Same monthly rent and you do $4000 per month services that is $900 to her. Either way you look at it she is getting a big chunk of your income. I feel a flat rent per month is better.
What is she doing for you for the additional 10%?
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Permalink Reply by Sheila Brittingham on
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Hi Susan....Thank you for your input. I told her that I would not accept her offer. I appreciate your response.
Susan Ferguson said:I pay a flat monthly rent. I supply absolutely everything. What is the monthly amount she wants to charge you? If you think about it.... example: rent $500/mo and say you only do $1000 per month in services ( low est.) Your monthly amount to her would be $600 - 60% of your months gross receipts plus all your other expenses...ouch!
Same monthly rent and you do $4000 per month services that is $900 to her. Either way you look at it she is getting a big chunk of your income. I feel a flat rent per month is better.
What is she doing for you for the additional 10%?
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Permalink Reply by Cat the bikini waxer on
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NOOO! that is not normal!! at least not here, in Calif??? You should pay a set montlhy rent! Period!
Where is this??
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This is the beach area of Delaware. Thanks for your input.
Cat the bikini waxer said:NOOO! that is not normal!! at least not here, in Calif??? You should pay a set montlhy rent! Period!
Where is this??
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Permalink Reply by Rachael Pontillo on
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I have heard of that happening at some spas here in PA, although my aesthetics teacher said it is not normal practice. One colleague of mine works at a high end salon/spa in Philadelphia and has to pay a $5.00 for every procedure she does. Any coupons or free gifts also come out of her pocket, but she is an employee, not an independent contractor. We don't have booth rental in PA but personally I would not enter into any contract that required a service fee on top of a monthly rent.
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Hi Rachael, Thanks for your input.
Rachael Pontillo said:I have heard of that happening at some spas here in PA, although my aesthetics teacher said it is not normal practice. One colleague of mine works at a high end salon/spa in Philadelphia and has to pay a $5.00 for every procedure she does. Any coupons or free gifts also come out of her pocket, but she is an employee, not an independent contractor. We don't have booth rental in PA but personally I would not enter into any contract that required a service fee on top of a monthly rent.
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I recently started working at a spa on commission. The other day (before my contract was signed) she mentioned wanting to charge $150 a month for rent!? I told her I have never heard of this. Has anyone else? Every place I know that pays commission does not charge rent.
Thanks, Necia
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I have been an independand contractor for 5 yrs and have always paid flat rent. I also paid for all of my own supplies. Will the spa be paying for some of your supplies other than water and utilities? You either pay rent or commission. Not both! Oh--and for the person being charged rent plus $5 a service---thats just not right!
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Permalink Reply by Pamela Cantor on
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No, it's not normal . . . although there probably is no "normal" in business. Check out the IRS guidelines for independent contractors so you now those regulations then realize that EVERYTHING is negotiable. These days, most owner would rather have the space rented. As an IC, you are a business which is negotiating with another business. You are on equal footing so get the contract YOU want.
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Permalink Reply by Shelley Hancock on
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No...it's usually either rent or a percentage split. Not both. Is she providing anything to you that would warrant her wanting 10% at the end of the month? I'm glad to see your post stating you didn't accept her offer!
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Hi Shelley....no....my equipment and my products. Thank you for your input.
Shelley Hancock said:No...it's usually either rent or a percentage split. Not both. Is she providing anything to you that would warrant her wanting 10% at the end of the month? I'm glad to see your post stating you didn't accept her offer!
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No that is not normal. If they tell you when you are to be at work, control what you do, and supply everything and pay you commission then you are considered an employee by IRS standards. You should not be paying rent also. Are they wanting to take taxes out of your check? If not and they still have the level of control mentioned above then they are simply trying to skirt IRS issues. In most instances this is not legal. I really hate that many salons and spas try to do this, they are trying to save on paying their share of employment taxes, this also means you are not covered under their Work Comp policy and you are more than likely not covered by any liability ins. If they are going to take taxes out of your check and you are covered on work comp. then why in the world would they be wanting to charge you rent also, basically they would be stating that they are going to keep the first $150 in commissions earned, that means you are working for free until you have earned above that amount.
Necia Kuleck said:
I recently started working at a spa on commission. The other day (before my contract was signed) she mentioned wanting to charge $150 a month for rent!? I told her I have never heard of this. Has anyone else? Every place I know that pays commission does not charge rent.
Thanks, Necia
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