Barbers / Independent Contractors /Booth Rentals
This type of arrangement most commonly occurs when a barber rents a chair (known as booth rental) but is responsible for everything from buying his/her own supplies tools, implements and paying taxes on earned income. Barbershop's should get away from this practice because it can be a minefield of potential long term problems for barbers, particularly when it comes to the IRS, and Social Security Benefits, under current tax laws many barbers have been working as employees without any benefits of that classification,To find out what the IRS says about the relationship between an employee a (booth renter) independent contractor visit www.irs.gov If your renting a booth without a business license and barber license you're actually losing out on tax breaks and long term benefit's, that an accountant can show you how you're losing since you're self employed.
They're many good reason's to report all your income.
Increased Social Security Benefits the more you pay the more you get back.
Improved financing when applying for mortgage, and other loans.
Increased workers compensation should you get hurt on the job.
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