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  1. #1

    Default Tax questions about IC or employee?

    Hey everybody.......

    I am not a groomer, but married to one, so I apologize in advance if I donít speak your groomer lingo. My wife has been working for a small shop for a number of years now. She shows up when the owner tells her to, she does get off early or days off basically whenever she wants, and gets assigned all her dogs by the owner. She does have her handful of dogs that request her, but all appointments get booked through the owner. She gets 50% commission for whatever services she does, but the owner collects all the money and my wife doesnít even know how much some of the clients are charged.

    My wife has to file as self employed every year and pay in all these extra taxes that go along with that. I feel like she is MAJORLY being taken advantage of, along with the other few groomers at the small shop. My wife just tells me thatís the way it is in the grooming industry.

    I guess I just need somebody to help clarify this for me......is this really ďjust the way it is in the grooming industry?Ē Or or is my wife and our family being completely taken advantage of and robbed on our taxes, for lack of a better term?

    Thank anybody who responds in advance!!!

  2. #2
    Join Date
    Oct 2015
    Location
    All over the USA
    Posts
    10,211

    Default

    She is not properly classified as a 1099 employee. It happens a lot in the industry. But as long as she accepts that arrangement, she better file as a self-employed 1099 groomer. Many times all a groomer can do is find alternate employment where the job is a W-2 position.

    The key point is this with the IRS now. If the owner/groomer of the business cannot groom ALL the dogs in any day coming in for grooming and the owner/groomer then asks others to groom the grooms the owner/groomer cannot grooming, those groomers are EMPLOYEES W-2. Your wife would be grooming ONLY her customers, not the employer's clientele. Many owners just know well so many others are doing that 1099 thing and just do it even when it is not appropriate. Also, many individual US states are making even stiffer rules that make groomers not 1099. Laws vary in every state.
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  3. #3
    Join Date
    Dec 2007
    Location
    Humboldt
    Posts
    2,497

    Default

    I feel for you. Quite a few other groomers in my area use 1099 and the groomers hate it. If they work me and I pay 50% commission, but the work 50% commission as a 1099 the don't make as much because they pay lots more taxes and no workers comp coverage. Outrageous.

  4. #4
    Join Date
    Jan 2007
    Posts
    1,495

    Default

    Iíve been told that if someone tells you what time to be at work, and inspects your work, (plus loads of other things) you are an employee. Period.

    So if she is an IC, she should be able to come to work at 2am and her work could be hideous and no one could say a thing.

    The table rent thing is just an extention of that. Itís most often illegal too. Beauty Salons do it in my State. Iíve always thought, ďthe State is just waiting till there are tons of shops doing that and then they will crack downĒ. Sure enough, I heard it on the radio the other day. The State is cracking down and hair dressers are having a hissy fit!

    Itís expensive to have employees. Thus the reason that owners want to save a few bucks although illegally.
    But your wife needs to watch her own behind and not set herself up for fines and penalties

  5. #5
    Join Date
    Jun 2016
    Location
    San Diego
    Posts
    773

    Default

    I read about many professions that were typically in CA are being forced to change too. She will have to be careful. She has accepted so far. If they don't change she will need to find another job. None of the corp stores make them IC. You think they know the law, sure they do. They know they are not IC groomers.

  6. #6
    Join Date
    Aug 2017
    Posts
    209

    Default

    Before we opened our business we heard so many groomers were 1099. We thought it was normal. Thank heavens we came here and learned about all this. We talked with some grooming owners and they got angry when questioning about IC legality. Ouch. We know now groomers are not 1099, let them take the risks.

  7. #7
    Join Date
    Feb 2019
    Location
    MS
    Posts
    70

    Default

    I was surprised the school I went to said IC was fine.

  8. #8
    Join Date
    Feb 2019
    Location
    Atlanta
    Posts
    65

    Default

    Nice to hear a man stick up for his wife.

  9. #9
    Join Date
    Feb 2019
    Location
    Atlanta
    Posts
    65

    Default

    Those places are in denial and that's not a river in Egypt. They really don't care about the employees.

  10. #10
    Join Date
    Feb 2019
    Location
    Atlanta
    Posts
    65

    Default

    I wondered what happened, OP did she move on to another job?

  11. #11
    Join Date
    Jun 2016
    Location
    San Diego
    Posts
    773

    Default

    I hope so.

  12. #12
    Join Date
    Jul 2010
    Location
    Alberta, Canada
    Posts
    3,518

    Default

    The only way it's legal is if your wife had her own clients ( no sharing with owner) own phone, sets own schedule. She decides her pricing, own tools except maybe large built in stuff. And she worked at more than one place, or could choose to work at more than one location if she chooses. The Canadian government defines it as they have control over their business, and risk of financial loss as well as opportunity for financial gain versus a employee paid no matter what.

    Sent from my Pixel XL using Tapatalk

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