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Articles > Business > Could You Be Misclassified As An Independent Contractor?
April 12, 2021

Could You Be Misclassified As An Independent Contractor?

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Did you know that many stylists are misclassified as independent contractors when they should be classified as employees? This widespread issue in the salon industry can be a confusing gray area, but can cost salon owners a lot of money if the Internal Revenue Service conducts an audit.

 

When tax time comes, an employee receives a W-2 form, while an independent contractor receives a 1099 form.

 

Want to know if you’re misclassified? Download the FREE 19-page tax guide to help determine if you’re an employee or independent contractor.

 

Here’s a real-life example from the IRS on whether a stylist was an employee or independent contractor.

 

FACTS:

  • Stylist paid a percentage of money from services provided
  • Salon sets hours of work
  • Stylist required to wear a uniform

 

DETERMINATION: Employee

 

Get more real-life IRS rulings, the differences between an employee and independent contractor and 103 tax write-offs for stylist: Download the FREE 19-page guide!