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independent contractor vs employee
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Replies to This Discussion
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Permalink Reply by Gordon J. Wallis on
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I am employed.. not quite the same situation as you...but...I give a percentage of my work to my employer.. But I keep all my tips....A tip is a gift from your client to you personally.......The people you work with are too greedy.
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Permalink Reply by Relax & Rejuvenate on
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If your contract states 50% of all income (which is different than 50% of all service fees, unless the tips are added automatically) goes to the house, then you have no right to any more of the tip. That is a pretty unusual clause if it specifically states half the tip.
Certainly worth revisiting since tips can account for 1/3 of your income in this business
As for dress code -- depends. You may be required to abide by certain standards, which have to be defined for you, and you may be required to wear something identifying you to the client as working on behalf of this business (think about the DirecTV installer who comes to our home -- he has to wear a DTV logo shirt, but he has the option of buying it from them or buying his own so long as it conforms to their standards).
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Permalink Reply by Lavinna V. Rendon on
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I thought that as well, tips accounting for 1/3 of my income, I spoke with her today and I feel a little better, she made a really good point. She is furnishing the room, paying the bills, also furnishing the sheets and taking them home and washing them for us, so once its put that way its really not as bad as I thought. The dress code isn't really identifying us, its just something she would like, but rules are rules :0)
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Permalink Reply by Gael Wood on
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Just a suggestion, but I get ALL of my work clothes at second hand stores. I wear dress pants or khakis and polo shirts. I get great deals and don't stress out if I get oil on something and have to throw it away. I can usually find tons of nice clothes if I hit several stores.
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That is a great suggestion! Thank you :0)
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Independent contractor according to IRS is just that...Independednt, you are contracted to do a job. This means you as the contractor provided everything exept the client. You can wear what ever you want (hopefully look your best to represent yourself as a professional :),). You set your hours, fees and provide your own insurance. You pay your own taxes and receive a 1099 form to file your taxes. Most employers will give you a subleassor contract to sign if you are paying rent for a room in their facility, will give you a key and you provide a separate phone, keep your own records of clients. You would provide your own advertising .... They may stipulate in the contract that you pay a finder's fee in addition to rent for giving you access to their client base or just for being in an existing business. Other than that, it sounds like you are an employee. You need to request to be paid by check, have taxes taken out, this included reporting all your tips so they can be taxed. If not, you may have difficulty when you file your taxes, you want to build your retirement account with Social Security (usually the reason employers will treat you as a contractor, so they won't pay their part, or unemployment and worker's comp benefits for you :(... Is this too much... well its better to start the right way for you, oh and you will need a city business licence also and a business bank account as an independent contractor. A lot of times business owners don't know themselves the difference, so lets assume this is the case, instead of being taken advantage of you. Good luck, you have an employer that apparantly likes the way you work, talk to her about what you are aware of now and see her response. You don't have to stay where you are not treated as a professional, and yet you have an opportunity to educate and change the profession for the welfare of all of us...
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nicolasa said:Independent contractor according to IRS is just that...Independednt, you are contracted to do a job.
Yes, which also means you take however long is necessary to complete the job. So if the client is late -- that is the MTs problem, they have to complete the job contracted for the original payment contracted. If the MT is late, and cannot complete the job, they are in breach of their contract and must compensate the business.
This means you as the contractor provided everything exept the client.
Not necessarily. Our contracts have one rate when the contractor provides everything and "rental fees" for every item that we might provide that the contractor chooses to use. I fyou follow strict IRS guidelines of the contractor providing everything, that means they have to bring their own table, move the table that the business provides, use their own table, and return it the way the found it for each and every service.
You can wear what ever you want (hopefully look your best to represent yourself as a professional :),).
Again, not necessarily. If you want to install DirectTV systems as a contractor, you have to show up at the client location wearing a DTV logoed shirt (which the contractor must purchase/provide), with DTV signs on the vehicle, using DTV logoed paperwork, and wear shoe covers when entering the client's home. This is all 100% compliant with IRS regulations.
You set your hours, fees and provide your own insurance. You pay your own taxes and receive a 1099 form to file your taxes. Most employers will give you a subleassor contract to sign if you are paying rent for a room in their facility,
Once you have a lease in place, you are no longer an independent contractor of the business. You are a business (whether SP, S-corp or LLC) who is leasing space. That obliterates all the independent contractor constraints. In a lease you can stipulate minimum number of hours "open for business" and even which hours on which days. The sublessee can choose to work those hours or sub-contract the work or sublease the space if the lease allows it. A lease can stipulate rent as a $ amount, %, an amount determined bya the roll of dice or any combination of factors. leases cannot violate labor laws since it is not employment!
Other than that, it sounds like you are an employee.
Nothing in the post leads me to believe she is an employee.
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Permalink Reply by Laura Allen on
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This month's issue of Massage & Bodywork Magazine contains my article on this subject, and ABMP graciously allows everyone to read the digital edition online for FREE. www.massageandbodywork.com
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A couple of caveats, regarding Workers Comp
1) WC insurance is required of any employer, regardless of the number of employees, in almost every state. Owners of the business can exempt themselves from coverage, but even having 1 non-owner employee requires WC coverage
2) The example you gave of a MT doing chair massage and contracting other MTs to work for them. The first MT becomes a "genearal contractor" in that scenario, and in most states, General Contractors must either cover their sub-contractors with WC coverage, or have on file proof of WC insurance for their subs. Even if the sub is a sole proprietor who is exempt from having their own WC insurance, the GC must have coverage for any uninsured (even if opted out) subs.
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Relax and rejuvenate sounds like a business owner that uses contractors. HOWEVER uniforms issued are for employees, rental fees are expenses for contractors and yes contractors sign dividers. in other words a contractor is their own business, wether DBA, LLC, non profit... an employee does not sign any contracts or pays rent:)
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Oops, meant sign lease not dividers sorry my phone changed the wording
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About 80% of our work is done by employees.
All of our employees do sign employment contracts spelling out the terms of their employment, pay rates and policies and other conditions.
nicolasa said:Relax and rejuvenate sounds like a business owner that uses contractors. HOWEVER uniforms issued are for employees, rental fees are expenses for contractors and yes contractors sign dividers. in other words a contractor is their own business, wether DBA, LLC, non profit... an employee does not sign any contracts or pays rent:)
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