1099 AKA Independent Contractor 101

There are so many different routes salon persons can take in the beauty world. It can be confusing at times so let me afford you some clarity.

In general here are the main differences between 1099 & Employee…

1099

  1. More freedom and more responsibility – Often 1099’s pay for rent, utilities such as phone/internet, pay for supplies, advertising, liability insurance and more. This varies depending on the agreement.
  2. You do not have to stay at the salon all day waiting for clients. Only come when you have clients scheduled. Set your own days and hours. Do not listen to the owner if he or she try to force you to sit and wait for walk ins all day long, you do not have to.
  3. Set your own prices
  4. Create your own services
  5. Have your own dress code
  6. All the clients you treat are YOURS – I got royally screwed one time when I left a job as a 1099 and the owners refused to give me the client list. The owners cannot have you sign a “non-compete” form. Obviously, the clients do not have to follow you, but you are allowed all client information. Such as a list of their names, contact info and client care cards.
  7. Can earn commission or pay booth rentimg_7065
  8. Most things, if in both parties best interest, can be negotiated (excluding #6). For example, an agreement can be typed up where the owner wants the 1099 to wear a black uniform. Since everyone else working at the establishment wears the same uniform, it would be more professional and benefit the 1099 so he or she could agree by signing the contract. Other compromises include, agreeing to keep the same services and prices that have already been established. This could also be a benefit, however, I would leave room to create new services in order to up sell and be unique.
  9. The owner does not pay employee taxes or payroll taxes for the 1099. Therefore a 1099 must keep record of all work related expenses. Examples might include, parking, milage, gas, uniforms, supplies, liability insurance, license fees, continuing education, etc.

Here are a couple great resources:

Things You Should Know Before Filing Your Taxes

Directly From The IRS! 

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3 thoughts on “1099 AKA Independent Contractor 101

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