I am starting at a new hair salon in ohio. she is keeping 50 % of my services, plus $10 for maintaining equipment. She is not, however, withholding any taxes, social security, or anything. If she is keeping half the money and I am not an independent contractor, doesn't she have to withhold something?
2006-11-13 14:47:41 · 8 answers · asked by dixieb45 1 in Business & Finance ➔ Taxes ➔ United States
If you are not an independent contractor, then she does have to withhold from your pay.
So it sounds like you are an independent contractor, or more likely self-employed renting space in the salon. In that case, you are responsible for paying your taxes quarterly.
Sounds like it's time to dig out all of your paperwork from the salon and start reading. You may want to go over it with a lawyer or accountant.
2006-11-13 14:51:21 · answer #1 · answered by Lisa A 7 · 0⤊ 1⤋
If she doesn't withhold taxes from your pay, then she should give you a 1099 at the end of the year. Be sure to keep out 20-25% out of each of your checks to save back for taxes (you will have to pay in since there none were taken out during the year). I also believe you could claim the 50% and the $10 she charges you on your taxes. See a CPA regarding that part, but I would think you could. Good Luck.
2006-11-14 09:20:24 · answer #2 · answered by GreeneyedCowgirl 5 · 0⤊ 0⤋
RED FLAG -- Don't walk, run to your nearest department of employment office. Contact the labor department and having them to tell you what your rights are in Ohio. Check with people that work in other salon in the area, is this happening to them. She does not have the right to withhold 50% of your salary unless you signed agreement/contact with her to state what the 50% is for. If she is not withholding taxes you are an indepent contactor. You have no benefits if you get sick or hurt on the job you have nothing coming to you.
2006-11-13 23:08:14 · answer #3 · answered by D S 4 · 0⤊ 1⤋
Did you sign a contract to that effect? I don't know of ANY salon owner who keeps 50% AND then charges you for equipment maintenance.
Is this your FIRST job in a Hair Salon? Is what she is doing a common practice in the industry?
Check around and see what the other salons are doing. DON'T BE TAKEN. You could work out of your house or on your own for less than what she is expecting from you. Heck, you could open up your own place. Why should she get 50% of YOUR FOLLOWING ?
RUN AWAY . . . . . RUN F A R AWAY !!!!!!
2006-11-13 22:59:09 · answer #4 · answered by Len_NJ 3 · 0⤊ 1⤋
You need to get this strait with her. You are being treated as an independent contractor not as an employee. If you were an employee she would be required to withhold taxes from your pay.
As an independent contractor you are going to pay federal and state income tax on your net earnings. In addition you will pay 15.3% of you net income for spcial secuity tax.
2006-11-14 06:44:03 · answer #5 · answered by waggy_33 6 · 0⤊ 0⤋
Sometimes what the employer does in this area depends on just how many employees they have ,,,,But the way you've described what the situation is ,,, It sounds like you have joined in a partnership ,,,, It might be a good Idea for you to contact some one in the Better Business Bureau and find out what's right or wrong here ,,,,,, I wouldn't wait too long if I were you ,,,,,
2006-11-14 02:06:17 · answer #6 · answered by Anonymous · 0⤊ 0⤋
It means that you are "self-employed". You better start a savings account and put about 28% in it each paychack. You will have to pay the taxes when you file.
2006-11-13 22:50:31 · answer #7 · answered by Mariposa 7 · 0⤊ 1⤋
absolutely. my sister in laws family is in BIG trouble with the government for doing the exact same thing.
2006-11-13 23:04:09 · answer #8 · answered by bernel1403 5 · 0⤊ 1⤋