Ep. 4 - Is your hair salon assistant a contractor or employee? Avoid misclassification
If you're a hair stylist with an assistant, you'll want to make sure you're classifying them correctly for whether they're an independent contractor or employee. The IRS looks at three different things to determine whether someone is an employee or not:
Behavior Control
Financial Control
Relationship
Classifying your assistant correctly and keeps you out of trouble with the IRS and will help you record the business expense correctly for tax purposes.