Hello, I’m a new hairstylist in NY and started at a salon this spring. I’m a commission stylist getting 60%, and my salon gets 40%. I’m a 1099 employee instead of a W2, which I heard is illegal for commission workers. I feel like I’m gonna be screwed for taxes. My boss covers color and back bar, but everything else (tools, training, etc.) is on me. I make my schedule but have specific tasks and sometimes scheduled clients outside my hours. This month, we’re getting contracts with a new scale where more hours mean 60% commission, and fewer hours can drop to 40%. I feel like I’m being taken advantage of for being new. Please help!
I would recommend posting in a forum specific for hairstylists. All the hair stylists I know are self-employed, but I don’t know the financials. Sometimes it’s renting a chair. It’s very industry-specific.
Hi there, I can give you info from the US Department of Labor. If you’re misclassified as a 1099 and should be a W2, this will require a misclassification complaint. It’s a lot to take in, so read this slowly and carefully. Here’s a guide to get you started: Small Entity Compliance Guide | U.S. Department of Labor. If you are an independent contractor, there are certain rules. Look through the material to understand your situation better.
@BRAY
Thanks for the link! I’ll take my time to go through it.
Did you know 1099 is a category? There are multiple types, like 1099 NEC for non-employee commission payments. More info here: Reporting payments to independent contractors | Internal Revenue Service
@Koa
I didn’t know that! I’ll look into the different types.
Yan said:
@Koa
I didn’t know that! I’ll look into the different types.
Yes, it’s important to understand which 1099 you’re under. It affects your taxes.
You are right to be concerned about taxes. It’s a complex issue, and social media might not be the best place for it. Consider consulting a lawyer or financial advisor. They can provide guidance tailored to your situation.
@Avery
Agreed. Professional advice is crucial here. There are many resources available at county, state, and federal levels. Look into those.
Hey, you must include your location, your state, in the post body or title. This community is about US employment law. Follow the rules, and you’ll be fine.
Vale said:
Hey, you must include your location, your state, in the post body or title. This community is about US employment law. Follow the rules, and you’ll be fine.
Noted, I’ll make sure to include my location. Thanks for the heads-up.