Does Anyone know the laws regarding how an employee, independent contractor or commission split employee gets paid?

The spa & salon I currently work at my fellow co workers and I have been discussing how we are legally suppose to get paid.  Do we have to supply are own products? 

 

If we are hired as an employee, independent contractor or commission split employee what are the legalities that go along with it.  Does anyone know who to contact about this issue?  Please point me in the right direction.  Thank you  ;0)

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You call the city commerce dept in your area and they can tell you. It might be different state to state and I'm not sure where you are located?

The very first thing to do is know whether you are treated as an employee or independent contractor as defined by the IRS. http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

 

You are only on independent contractor if you direct eberything you do and have the decidion making power on when you work, how you work, what you do, what type of products you decide to use, ect. In that case you are responsible for all your taxes.

 

if the salon requires you to be onsite at specified hours, requires you to use their specific products, then you will most likely be considered on employee by the IRS.

 

Here are a couple excerpts from the IRS website

 

Permanency of the Relationship

If you hire a worker with the expectation that the relationship will continue indefinitely, rather than for a specific project or period, this is generally considered evidence that the intent was to create an employer-employee relationship.

Services Provided as Key Activity of the Business

If a worker provides services that are a key aspect of the business, it is more likely that the business will have the right to direct and control his or her activities.  For example, if a law firm hires an attorney, it is likely that it will present the attorney’s work as its own and would have the right to control or direct that work.  This would indicate an employer-employee relationship.

Thanks Audrey and Cameo.  I will look into the info you both gave me.   ;0)

Thanks for your input Bonnie.  Right now I am commission split and am providing my own product except she does provide some equipment.  She has a steamer, some facial treatment product and provides me with waxing essentials for example: strips, wooden sticks, cleanser for waxing etc...

 

I would like to know the legalities so I know if I am getting what I am suppose to and most importantly if I am being paid correctly.  ;0)

Hi Bonnie

Yes, I am getting a check but she is 1099 me.  Yes,  I believe she is playing both sides of the fence  This is why I am asking this question.  I want to know for sure how it all works.  ;0)

Yes, Bonnie I should see if ASCP has a legal dept.  I'm not being taxed so the 1099 would be correct.  On my memebship card I do see a # for Legal Access 800-993-8886.  Thanks and let me know if you find anything out.  I will do the same.  ;0)

Since you're an ASCP member, you can also check out the digital Successful Business Handbook which has a section on figuring out the contractor vs. employee situation. Direct link is http://cp.revolio.com/issue/15024/173 but you will have to log in to see it.

 

We don't have a person on staff at ASCP to give direct legal advice about specific situations like this, but that phone number on your card will connect you to the ASCP Silver Legal Plan which is discounted legal advice and services. The other ASCP legal discount partner is Caldwell Legal USA. Their number is  800-222-3035. Hopefully one or the other of those will be able to sort things out for you.

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