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Hourly rate vs commission?
#1
Does anyone know what is a decent hourly rate for someone going into a bran new salon with no clientele? I would be doing natural nails, shellac, pedicure's, waxing and facials. I was asked if I would be interested in working only one day a week. I also have over 20 years of front office/clerical receptionist work & could possible do that if she is interested. Any input would be helpful. My friend who is also a Manicurist & Aesthetician is going to work there on Fridays. She told her about me & to call if I am interested. I have a nail salon out of my home that I have had for the past 12 years along with going to a local retirement home 1 sometimes 2 days a week. I just added facials 6-8 months ago & business is super slow.
The owner is planning on paying for all supplies & equipment.
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#2
Whether hourly or commission, you need to be compensated the equivalent of minimum wage for the time you're scheduled to work, whether you have clients or not.

It's not unusual for employees to earn an hourly rate plus commission when certain targets are met. For example, my employees earn $10/hour plus tips, 20% commission on retail and commission on services on a stepped scale.
Jaime Schrabeck, Ph.D. (yes, it's real)
http://www.precisionnails.com
http://shop.precisionnails.com
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#3
(03-22-2012, 09:30 AM)PrecisionNails Wrote: Whether hourly or commission, you need to be compensated the equivalent of minimum wage for the time you're scheduled to work, whether you have clients or not.

It's not unusual for employees to earn an hourly rate plus commission when certain targets are met. For example, my employees earn $10/hour plus tips, 20% commission on retail and commission on services on a stepped scale.



I will be starting on April 12th. working only 1 day a week to start. When I interviewed with her, she told me that she wants to pay comminssion only 50% of my services, no hourly wage. I will be doing my own taxes. She will cash me out at the end of the day.This is a bran new salon, she has nothing. Not even a nail table. She also has asked me if I could bring some supply's with me when I come until she can get everything. Of course I told her yes but I don't know how well that is going to work. Since I currently have a home based salon in another city (10 miles away) she knows I have everything. She does not plan on paying me if I have no clients on the books. I have never worked in a salon before so I was wondering how other nail techs get paid working in a salon.
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#4
This arrangement is not legal . . .
Jaime Schrabeck, Ph.D. (yes, it's real)
http://www.precisionnails.com
http://shop.precisionnails.com
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#5
And even if it were legal, if you're Providing everything and paying self employment taxes, 50% is way too much com to the salon! She is putting herself in a really bad situation committing tax fraud, which is a scary place to be, and if you run the numbers you'll find that your net compensation will not yield a good income. A lose lose proposition.
Candice
Nail Tech/Owner
http://www.PanacheNailStudio.com
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#6
(04-02-2012, 12:42 PM)Mashelle Wrote:
(03-22-2012, 09:30 AM)PrecisionNails Wrote: Whether hourly or commission, you need to be compensated the equivalent of minimum wage for the time you're scheduled to work, whether you have clients or not.

It's not unusual for employees to earn an hourly rate plus commission when certain targets are met. For example, my employees earn $10/hour plus tips, 20% commission on retail and commission on services on a stepped scale.



I will be starting on April 12th. working only 1 day a week to start. When I interviewed with her, she told me that she wants to pay comminssion only 50% of my services, no hourly wage. I will be doing my own taxes. She will cash me out at the end of the day.This is a bran new salon, she has nothing. Not even a nail table. She also has asked me if I could bring some supply's with me when I come until she can get everything. Of course I told her yes but I don't know how well that is going to work. Since I currently have a home based salon in another city (10 miles away) she knows I have everything. She does not plan on paying me if I have no clients on the books. I have never worked in a salon before so I was wondering how other nail techs get paid working in a salon.

She has no choice but to pay you the agreed commission and/or a hourly pay that would equal no less than minimum wage, for hours at the salon.. Which ever is greater of the two. She cannot pay you a % and ask you to pay your own taxes. That makes you a booth renter and you would pay a flat rental fee per week or month then. Independent contractors do not ( according to the IRS sites ) work in the same location week after week, they travel. They are different then Booth renters according to the IRS documentation. So you will be her employee making a paycheck, that's again no less than minimum wage. She needs to be paying your taxes and buying the products, keeping your schedule and managing your time. OR she will be your landlord with you paying rent and your own taxes, doing your own books, and buying your own supplies ( just like your home salon ). I really have no clue why so many owners just open shop without really understanding the laws. Its good you came to ask and are armed with more information now. Its poor ownership on her part to be so out of the loop when it comes to legal practices.
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