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  • Independent Shop questions

    Going from corporate salon after 6 years to independent. I'm really nervous as they are both so different. Anyways, some questions..And btw, im not an ic as I'd be grooming their clients and going by their schedule.
    1. How do I know for certain what I am classified as by them?
    2. If it turns out I am ever misclassified, do I get penalised by is or does the busines responsible?
    3. Is it reasonable of them to ask me to pay the majority of the vet bill should one of my dogs need to go?
    4. Is it reasonable of them to ask me not to work for other groomers or myself within 35 miles of them for the duration of 1 year after my employment ends with them (I personally think 1 year and 35 miles is a bit much esp since they didn't teach me to groom)?
    4. Any info or advice you have to make this transition easier on me (I'm a but scared of big changes esp when it involves my security)?
    Thank you !

  • #2
    1.W2=employee, not to mention if you are grooming their dogs and by their schedule, employee.
    3.In my opinion it is their responsibility to pay vet bill.
    4. 35 miles is flat out obsurd. (Not what I want to say, mind you) even corporate was 2 miles last time I checked.

    Comment


    • #3
      1) W-2 means you are an employee. 1099 means independent contractor. Since it is their clientele and they control scheduling and money, you should be a W-2 employee or you will be a misclassified employee.

      2) If you are misclassified, first they would usually need to be reported to get caught. The employer is then penalized. You, however, lose money since you are paying the employers share of FICA, Social Security taxes, etc. You would also be required to pay quarterly taxes as a 1099 rather than annually. You would also be required to carry your own insurance which brings us to question #3.
      3) Usually the employers insurance covers any accidents. If you are a fake IC, you may be responsible for all expenses since their policy won't cover you.
      4) Non-competes vary from state to state, so you would need to check your own particular laws. Here in Georgia, they must limit the scope to reasonable time frame and distance and only apply to key employees. They consider 2 years or less reasonable here, but 35 miles would get that non-compete thrown out in court!

      Comment


      • #4
        I am in the same boat @lycanthropy11!

        I'm going from a corporate to a locally owned. (I start Thursday!)

        1 year and 35 miles is ridiculous. I believe businesses make contracts like that based on location. I live in a rural area with not many shops, my corporate job says nothing within 10 miles or you have to wait 6 months. (Luckily my new job is 11 miles away) and they "taught" me.


        I was given a W2 (it's her clients, and her schedule, paid 50% com.)

        I have to pay for any careless mistakes that result in vet bill. Which I agreed to. She knows freak accidents happen & dogs could have problem out of my control. The shop pays for that.


        I am also nervous, as with my corporate job I was at least gaurentee hourly if no dogs showed up! Now I rely completely on dogs coming in.

        But you couldn't beat the benefits of the locally owned place, closer to home, no more holidays or weekends (unless I want to!), a set schedule, calm environment. No more (or at least hardly any) "walk in" nail trims (all her clients are trained to call ahead!), no more answering the phone every 5 minutes while getting behind on dogs.


        Good luck at your new job! If you ever need to talk to someone about a big move like this, I'm always here and always free to talk (unless I'm grooming a dog of course!)


        Sent from my SM-S120VL using Tapatalk

        Comment


        • #5
          Originally posted by 3shihtzus View Post
          I am in the same boat @lycanthropy11!

          I'm going from a corporate to a locally owned. (I start Thursday!)

          1 year and 35 miles is ridiculous. I believe businesses make contracts like that based on location. I live in a rural area with not many shops, my corporate job says nothing within 10 miles or you have to wait 6 months. (Luckily my new job is 11 miles away) and they "taught" me.


          I was given a W2 (it's her clients, and her schedule, paid 50% com.)

          I have to pay for any careless mistakes that result in vet bill. Which I agreed to. She knows freak accidents happen & dogs could have problem out of my control. The shop pays for that.


          I am also nervous, as with my corporate job I was at least gaurentee hourly if no dogs showed up! Now I rely completely on dogs coming in.

          But you couldn't beat the benefits of the locally owned place, closer to home, no more holidays or weekends (unless I want to!), a set schedule, calm environment. No more (or at least hardly any) "walk in" nail trims (all her clients are trained to call ahead!), no more answering the phone every 5 minutes while getting behind on dogs.


          Good luck at your new job! If you ever need to talk to someone about a big move like this, I'm always here and always free to talk (unless I'm grooming a dog of course!)


          Sent from my SM-S120VL using Tapatalk
          In most if not all states it is illegal to make W-2 employee pay for "mistakes" like vet bills in this case. Just a FYI, hope it all works out.

          Comment


          • #6
            Originally posted by Lycanthropy11 View Post
            Going from corporate salon after 6 years to independent. I'm really nervous as they are both so different. Anyways, some questions..And btw, im not an ic as I'd be grooming their clients and going by their schedule.
            1. How do I know for certain what I am classified as by them?
            2. If it turns out I am ever misclassified, do I get penalised by is or does the busines responsible?
            3. Is it reasonable of them to ask me to pay the majority of the vet bill should one of my dogs need to go?
            4. Is it reasonable of them to ask me not to work for other groomers or myself within 35 miles of them for the duration of 1 year after my employment ends with them (I personally think 1 year and 35 miles is a bit much esp since they didn't teach me to groom)?
            4. Any info or advice you have to make this transition easier on me (I'm a but scared of big changes esp when it involves my security)?
            Thank you !
            If you don't fill out a W-4 form and instead a W-9 you are IC. The IRS holds you responsible to know the law as well as the owner. Just ask them. If they don't take deductions like FICA medicare out of your check, they are IC. You shouldn't have to pay vet bills if you are an employee. IC would because IC is grooming their clients, but sounds like you are grooming their clientele. Are you full time and want to work full time but they would ask you not to work closer, that would be absurd. ICs might see a noncompete.

            If you are 50% as an IC and accept that you are likely going to earn less than corp because you are going to have to pay self employment taxes which are higher than employee taxes deducted like at corp.

            You better ask right away if you are IC or employee. Let us know.

            Comment


            • #7
              Employee. I filled out a W4, I will get a W2 come tax season. Shes paying vet bills, unless I make careless mistakes.

              Sent from my SM-S120VL using Tapatalk

              Comment


              • #8
                She is having an accountant make all deductions so everything gets done correctly.

                Sent from my SM-S120VL using Tapatalk

                Comment


                • #9
                  Originally posted by 10muddypaws View Post
                  If you don't fill out a W-4 form and instead a W-9 you are IC. The IRS holds you responsible to know the law as well as the owner. Just ask them. If they don't take deductions like FICA medicare out of your check, they are IC. You shouldn't have to pay vet bills if you are an employee. IC would because IC is grooming their clients, but sounds like you are grooming their clientele. Are you full time and want to work full time but they would ask you not to work closer, that would be absurd. ICs might see a noncompete.

                  If you are 50% as an IC and accept that you are likely going to earn less than corp because you are going to have to pay self employment taxes which are higher than employee taxes deducted like at corp.

                  You better ask right away if you are IC or employee. Let us know.
                  I'm new to the forums, I keep thinking I can tag people. Hopefully you see this!

                  Sent from my SM-S120VL using Tapatalk

                  Comment


                  • #10
                    Originally posted by 3shihtzus View Post
                    Employee. I filled out a W4, I will get a W2 come tax season. Shes paying vet bills, unless I make careless mistakes.

                    Sent from my SM-S120VL using Tapatalk
                    That's not legal. She can fire you for careless mistakes but not make you pay a vet bill. Even if you agreed to it. It's not legal.
                    <a href="http://www.groomwise.typepad.com/grooming_smarter" target="_blank">My Blog</a> The two most important days in your life are the day you are born and the day you find out why. –Mark Twain

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