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Subject Author Date
hairdresser employee or subcontractor? SMF 06-01-2008
Posted by SMF on June 1, 2008, 8:40 pm
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 Should a hair dresser be paid as a subcontractor or an employee? They
will be paid hourly and receive comissions on cuts. They provide all
their own supplies, and work their own hours, and obviously cut as
they see fit. After reading publication 15-A I'm still not sure. It
seems possible both ways. Obviously I'd prefer the subcontract.
Advice please?

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Posted by Arthur Kamlet on June 1, 2008, 8:58 pm
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>Should a hair dresser be paid as a subcontractor or an employee? They
>will be paid hourly and receive comissions on cuts. They provide all
>their own supplies, and work their own hours, and obviously cut as
>they see fit. After reading publication 15-A I'm still not sure. It
>seems possible both ways. Obviously I'd prefer the subcontract.


Since you have gone through the checklist in Pub 15A, you see that
quite a few lean towards being a contractor. Especially the
Supplies own Tools, and Sets own work hours.


If the person also holds and pays for workers comp insurance, and I
would hope this is the case, and perhaps even liability insurance, that
would clearly swing my view towards contractor.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

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Posted by Harlan Lunsford on June 6, 2008, 10:08 pm
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Arthur Kamlet wrote:
>> Should a hair dresser be paid as a subcontractor or an employee? They
>> will be paid hourly and receive comissions on cuts. They provide all
>> their own supplies, and work their own hours, and obviously cut as
>> they see fit. After reading publication 15-A I'm still not sure. It
>> seems possible both ways. Obviously I'd prefer the subcontract.
>
>
> Since you have gone through the checklist in Pub 15A, you see that
> quite a few lean towards being a contractor. Especially the
> Supplies own Tools, and Sets own work hours.
>
>
> If the person also holds and pays for workers comp insurance, and I
> would hope this is the case, and perhaps even liability insurance, that
> would clearly swing my view towards contractor.

Ah, but the determining factor here IS: that the workers is paid hourly
PLUS commissions. Doesn't matter that they 'set their own hours' ,
which simply means that they show up when they have appointments.

Unless there is a formal booth rental agreement, they are common law
employees.

IRS has guidance on it.

ChEAr$,
Harlan Lunsford, EA n LA

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<< The foregoing was not intended or written to be used, >>
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Posted by Stuart Bronstein on June 7, 2008, 2:19 am
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> Arthur Kamlet wrote:

>> If the person also holds and pays for workers comp insurance, and
>> I would hope this is the case, and perhaps even liability
>> insurance, that would clearly swing my view towards contractor.
>
> Ah, but the determining factor here IS: that the workers is paid
> hourly PLUS commissions. Doesn't matter that they 'set their own
> hours' , which simply means that they show up when they have
> appointments.

>From a legal standpoint whether someone is an employee or contractor
has little to do with how they are paid or how pay is calculated. The
issue is who controls the work and work flow. If someone is paid
hourly it is one indicia of an employee, but a minor one.

> Unless there is a formal booth rental agreement, they are common
> law employees.

That's not what the courts would say.

> IRS has guidance on it.

Can you find that? I'd like to see it. Here's Publication 15:
http://www.irs.gov/pub/irs-pdf/p15a.pdf

Stu

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Harlan Lunsford on June 7, 2008, 10:55 am
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Stuart Bronstein wrote:
>> Arthur Kamlet wrote:
>
>>> If the person also holds and pays for workers comp insurance, and
>>> I would hope this is the case, and perhaps even liability
>>> insurance, that would clearly swing my view towards contractor.
>> Ah, but the determining factor here IS: that the workers is paid
>> hourly PLUS commissions. Doesn't matter that they 'set their own
>> hours' , which simply means that they show up when they have
>> appointments.
>
>>From a legal standpoint whether someone is an employee or contractor
> has little to do with how they are paid or how pay is calculated. The
> issue is who controls the work and work flow. If someone is paid
> hourly it is one indicia of an employee, but a minor one.
>
>> Unless there is a formal booth rental agreement, they are common
>> law employees.
>
> That's not what the courts would say.
>
>> IRS has guidance on it.
>
> Can you find that? I'd like to see it. Here's Publication 15:
> http://www.irs.gov/pub/irs-pdf/p15a.pdf

I just looked at IRS web site and can't find the specialty position
paper on the subject. Thought it was an MSSP, but not currently among
those. perhaps I can find something at office if you send me email
to "lunstax" at my ISP and remind me.

ChEAr$,
Harlan

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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