Announcement

Collapse
No announcement yet.

Hello from Los Angeles. New at being an Independent Contractor.

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Hello from Los Angeles. New at being an Independent Contractor.

    Hello Everyone. I am a cat only groomer who just recently began working as an independent contractor. I have been grooming cats for over 6 years. I love what I do! I had the opportunity to hook up with a brand new business owner. The person I am working under just opened the business 1 year ago. I have been on board since the opening. I was working a regular job and doing grooms on my days off as a 1099 employee. Some of my clients followed or found me. She makes all of my appointments and makes claim to the clientele. Business picked up and I had to quit my regular 40 hour a week job at a local veterinarian. I am now doing anywhere from 10 to 20 grooms a week and am looking forward to doubling that in the next year. Last year I was making 50% commission on grooms, and 15% on nail trims and soft paw applications + tips. The owner was purchasing the shampoos and the soft paw tips. They provided the grooming room, clippers and vacuum, the force dryer, towels and laundry facilities. This year I was put at 45% commissions + tips on ALL my services and I am purchasing my shampoos and soft paw tips. I now have insurance and use all my own supplies and my own clippers. They say that the additional 5% they take is for the rental of the space. At the end of a pay period they add the total for all my grooms. I pay them a check for 5% of that total and they write me a check for 50% of the total. Since I am very new to being an independent contractor I of course am always wondering if I am doing this right. They also offered to just take the 5% out of my check. I am wondering what other people do. If its taken out of my check before they give it to me it won't show as income. If it goes on my paycheck and I write her a check for renting the space each week my tax adviser says I can deduct that at the end of the year as an expense. What is the correct and most beneficial way to to this? Is there any other groomers that are IC and renting a space also. Is there anything else I need to know about the situation I have myself in?

  • #2
    Uh, you are getting screwed. Imo. You shouldn't be paying rent and making a commission. That's not right

    Comment


    • #3
      They don't own the clients. They may think they do, but they don't. Independent contractors "own" their own clients. Make sure you get the contact information for each client for when you leave (and you will leave eventually, since this situation is a bit wacky.). Keep your own separate records for each client and don't let the business owner see them.
      Protect yourself. They may just be ignorant of the rules, but just in case, keep good records.

      Comment


      • #4
        No, no no ! Get out as soon as you can !

        Comment


        • #5
          Totally wrong. For all the above reasons.

          Comment


          • #6
            Just a heads up -
            No one here is going to like this response, but Groomers are one of the most commonly misidentified worker. They recently cracked down on an employer here in the Valley and the employer Does Not take the responsibility - the "independent contractor" which is technically an employee ends up getting penalized and have to pay.

            EDD is using the "USE of any of the business' equipment" to classify you as an employee.
            It does not seem fair b/c my perception is that Hair Stylist are 1099 and "rent" the space from their employer, but for some reason EDD loves to come after groomers.

            ... I would "think" that the only way to be truly safe would be to register yourself as a business, even if its just a Sole Proprietor.

            Comment


            • #7
              Hi! Why wouldn't anyone here like your response?

              Originally posted by Kairos View Post
              Just a heads up -
              No one here is going to like this response, but Groomers are one of the most commonly misidentified worker. They recently cracked down on an employer here in the Valley and the employer Does Not take the responsibility - the "independent contractor" which is technically an employee ends up getting penalized and have to pay.

              EDD is using the "USE of any of the business' equipment" to classify you as an employee.
              It does not seem fair b/c my perception is that Hair Stylist are 1099 and "rent" the space from their employer, but for some reason EDD loves to come after groomers.

              ... I would "think" that the only way to be truly safe would be to register yourself as a business, even if its just a Sole Proprietor.

              Comment


              • #8
                Originally posted by Kairos View Post
                Just a heads up -
                No one here is going to like this response, but Groomers are one of the most commonly misidentified worker. They recently cracked down on an employer here in the Valley and the employer Does Not take the responsibility - the "independent contractor" which is technically an employee ends up getting penalized and have to pay.

                EDD is using the "USE of any of the business' equipment" to classify you as an employee.
                It does not seem fair b/c my perception is that Hair Stylist are 1099 and "rent" the space from their employer, but for some reason EDD loves to come after groomers.

                ... I would "think" that the only way to be truly safe would be to register yourself as a business, even if its just a Sole Proprietor.
                We're all about no fake IC's on the board. At least most of us.

                Comment


                • #9
                  Originally posted by Kairos View Post
                  Just a heads up -
                  No one here is going to like this response, but Groomers are one of the most commonly misidentified worker. They recently cracked down on an employer here in the Valley and the employer Does Not take the responsibility - the "independent contractor" which is technically an employee ends up getting penalized and have to pay.

                  EDD is using the "USE of any of the business' equipment" to classify you as an employee.
                  It does not seem fair b/c my perception is that Hair Stylist are 1099 and "rent" the space from their employer, but for some reason EDD loves to come after groomers.

                  ... I would "think" that the only way to be truly safe would be to register yourself as a business, even if its just a Sole Proprietor.
                  Though, I would disagree with your point the employee 'has to pay'. If you are being paid as a 1099 employee, you should already be filing taxes as self employed. So there wouldn't be any further penalty to the 'employee'.

                  Comment


                  • #10
                    I have to agree with both of Cockerlvr's replies
                    Ain't always easy to stand up for what is right.

                    Comment


                    • #11
                      Originally posted by Kairos View Post
                      Just a heads up -
                      No one here is going to like this response, but Groomers are one of the most commonly misidentified worker. They recently cracked down on an employer here in the Valley and the employer Does Not take the responsibility - the "independent contractor" which is technically an employee ends up getting penalized and have to pay.

                      EDD is using the "USE of any of the business' equipment" to classify you as an employee.
                      It does not seem fair b/c my perception is that Hair Stylist are 1099 and "rent" the space from their employer, but for some reason EDD loves to come after groomers.

                      ... I would "think" that the only way to be truly safe would be to register yourself as a business, even if its just a Sole Proprietor.
                      You are right, except not that we won't like the fact that IC's are not classified correctly. We are the leading in the industry including our eMagazine that broadcasts that 99% of IC's are wrongly classified. I have heard that about the EDD. They don't want to quote IRS regulations since they are not a part of the IRS, so they can have their opinion. Similarly the State of Tennessee government made a landmark decision that groomers are not independent contractors in their state except some minor exceptions. The IRS has a publication that states clearly how hairstylists can be classified as IC's correctly, but you don't see that arrangement very often. 99% of IC groomers are not legal IC.

                      The biggest issue today that brings them all down is the clientele. If the owner of the business renting a space asks or lets you groom any of their clientele, the space renter is an EMPLOYEE. The space renter should ONLY groom their clients they developed. We have seen examples where the grooming business owner books 15 to 20 or more grooms a day. The business owner cannot groom all of those groomers. So the business owner finds another groomer to groom the excess groomers he or she cannot groom. The IRS has ruled that if the business owner assigns those grooms to another groomer, the assigned groomers are EMPLOYEES. No exceptions. However as we all know thousands of these "assigned groomers" are called IC's, and they are not.

                      Thanks for your comments.
                      Most questions regarding GroomerTALK are answered in the Board Help Talk Forum. Thanks for coming to our community a part of PetGroomer.com https://www.petgroomer.com.

                      Comment

                      Working...
                      X