Unethical!
Case: a spa owner said she will pay me under 1099 if hired and that I would have to do my own tax. She would get 60% and I get 40%. she has 5 girls work for her. Each of us would have our own little room with key. She provides supplies ( but it is up to me if I want to use my own supplies). she also provides everything else including clienteles, marketing, but doesn't tell me what or how do do during service/treatments. She will also provide training. She sets the price, runs promotions / coupons and also asked for my work schedule as the clients are book through her. Recall from the interview, it seems that she likes to hire me as a I.C employee. Is there such an I.C employee relationship exists? Also, if the owner provides everything then what do I write off on my income tax? If I.C relationship exists between us, should I be able to set my own price, buy my own liability insurance, keep my clients if I leave. I think in this case I would be more of her employee rather than I.C. That means should I get pay with w-2 instead 1099?
Views: 462
Replies to This Discussion
-
Permalink Reply by Beth on
-
She is trying to pull one over on you. I would not accept that position and then have to pay my own taxes and only make 40%. You wouldn't have your own supplies to write off, let alone rent. Plus, she wants your client info?? I personal would discuss other options with her.
-
-
So she is providing a clientelle for you? I would check into how much self-employment tax is. Can you retail your own product? I would print her out the definitions sheet of employee vs. IC(I think it is on the IRS website) and go from there. Just my opinion.
-
Permalink Reply by Starpil Wax Products on
-
Because you are looking to open your own busniess in the future be sure to look out for (no compete, or confidentiality agreements or clauses between the businesses clients and you. Just a thought.
Regards,
-
Permalink Reply by Cindy Greenwood on
-
I don't agree with the comment that she is trying to "pull one over on you".
This type of arrangement is common in this industry...
Employers like this arrangement a lot...
You can be an a salaried, hourly wage, or commissioned employee, OR an independant contractor (paid by 1099). From my understanding of the IRS questions which determine if you are legitimate IC - you would set your own hours, supply your own product, and work without supervision. So in your case you look more like an employee than IC. However - this employer is going to run her business this way whether you like it or not. If she doesn't hire YOU she will just move on to someone else. You should have your own insurance either way - and this is a deductible expense (as are uniforms and mileage).
So - look at the other benefits that this job might offer you...you will be getting free initial training, on the job training, you would not have to invest dollars in product or marketing. 40% is a good commission to start out. Lashes are an expensive service. See if there are opportunities to increase this to a higher % based on performance. This is an excellent opportunity to grow your skills while you continue to work towards your own place.
And without a doubt check out that contract - some places want you to sign contracts that you won't work anywhere else (even for yourself) and if you leave that you will not work for or open a business within a certain amount of time or distance. And especially - that you will not solicit or work on any of their clients if you leave. If you already HAVE your own private clientele you will need to discuss this with the potential employer so that she understands why you can not agree to that kind of noncompete. I have done this successfully everywhere I have gone.
-
-
Ah - then I take that back...
she is trying to take advantage of you!
Is that a normal rate for a full set? That sounds ridiculously LOW. yikes.
Hmmm ... if you were TRULY IC you would be setting your own pricing AND using your own prouct.
Hah - you should probably go in and TAKE all of their clients. I cant imagine how anyone is making a profit at that rate. There are some crazy owners out there...
Vi, unless you are desperate, maybe you should keep looking if you can't negotiate a better deal...which might be worth trying. Counter offer her ... you set your rate at $100 or whatever, you get 60%, use your own product...if she has half a brain she will see that means more money for her too. LOL
-
Permalink Reply by Claire Barnes on
-
BAH!!! Tell her to go jump in a lake!! $50 for a full set???????????????
-
-
lol... I wish I can ;)
I am sure you've seen similar situations all over CA
-
-
You are cutting yourself short by taking a job making $20 for a full set. I understand if you need the money we all do, but you are worth more. Just my two cents. I do understand that there are jobs out there like this that work. Maybe keep looking?
-
Permalink Reply by Kirsten Kayser on
-
Hello Vi,
I responded to you personally, but I wanted to add another comment here to the group. As an advocate for professional estheticians everywhere, I really want us all the stand up, hand in hand, and say 'no' to this type of treatment.
Either this woman is a landlord, renting out space to independent contractors who essentially run their own business however they see fit, or she is hiring employees who she supplies with product, equipment, bookings, etc. Legally and ethically, she cannot have her cake and eat it too in this scenario. Unfortunately, many newer estheticians out there do no understand the legalities, and will accept any position, be it fair and legal or not, to make some money :( I truly understand we all need to make a living, but it upsets me when people like this take advantage of others.
I would let her know that she cannot blur the lines between employee and IC, and what she's proposing is illegal and unfair. However, that will most likely cut you out of the position. If you have to take it for a short time just to bring in a little income (sounds like it will not be much considering!) while you keep hunting for an ethical situation, I understand. Just make sure if you do, you also take the advice to check out the non-compete (I would be surprised if you doesn't have one) and keep in mind, that in my experience, people who have attempted to run THEIR business this way consider it THEIRS, and want to control everything, but get away with not having to pay the taxes that they legally owe. It's not fair, and it's not right :(
I'm also very concerned if what I'm reading is correct, that she may be planning on hiring people who have no lash extension experience and training them for a couple hours herself? Yikes....this is a law suit waiting to happen, trust me. I would not set foot into that place without having your own liability insurance in place, and I highly recommend even if you don't sign on there, that you protect yourself and your future by getting your own professional liability coverage. It's not worth risking everything you're working so hard to achieve!
All my best to you!
Kirsten
-
-
Well said. Totally shocking and nothing surprises me anymore with what I come across! Sad....there are so many grey areas in this industry that a corporate world wouldn't get away with. Sadly these grey people do get away with it...until hopefully karma catches up with them without hurting clients in the process...we hope
-
-
Cindy, yup you are right..there are crazy owners out there that ridiculously set their price so low- $30 for a full set in 45 mins. No wonder there are many bad reviews that eyelash extension made clients lashes fall out.
If you were to get the full set from a trained and certified technician, it should cost you $150 on average ( usually between $120 to $300). Why so expensive? Because they used quality products/supplies. and they been trained how to apply lash by lash, hair-on hair and one-by-one. Your extension should take at least 2 hrs for a full set (experienced lashist). Your extension should feel weightless as your own natural lashes. The adhesive must be at room temp and usually expires after 90 days. At least with mine adhesive, i change every 90 days.
© 2024 Created by ASCP.
Powered by
