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IndustryAccounting and tax for salons, spas and studios.
Booth rental versus employment, sales tax on retail products, tips through payroll and the mix of W-2 and 1099 that the EDD looks at closely.
Where this industry gets it wrong
- Booth renters who are employees under the ABC test
- Product sales without sales tax collected
- Tips left out of payroll
- Owner paying personal expenses through the salon
Questions we hear from salons & personal services
Can my stylists be independent contractors?
Only if the booth-rental relationship meets California's tests: they set their own hours, prices and clients and pay you rent. We review each arrangement.
Do I charge sales tax on services?
Not on services in California, but yes on the products you sell. We register, collect and file.
Talk to us this week.
A free 15-minute call. Next step and a fixed fee, in writing. No hourly billing, no obligation.