1099 vs W-2, thoughts?? Very long, sorry lol

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teenchill

New member
So I've been working at a dog daycare and grooming place as an hourly groomer (w2). I make my hourly wage and most of the time go over time due to overbooking and I make 100% of my tips. I'm the main and only groomer there, but last year in August I got a second job on my two days off to work at a small grooming salon owned by a married couple, but they offered it as a 1099 independent contracting job. I make $180 a day and they said that encompasses my labor and tips. I took the job anyway even though it sounded like I'm being ripped off a little.

So basically, the place I'm working as an hourly groomer I've been at for 4-1/2 years. I was so underpaid but I finally spoke up about a raise and was given $19/hr plus my tips still. I've seen so many new management and employees come and go and so far, the management now is the most toxic it's ever been and it's just mentally exhausting and I'm burned out.

Meanwhile the 1099 job is very chill because it's just three of us there and it's not toxic, they're very friendly and welcoming and just last month, they said if i can start working 4-5 days with them and that they'll give me $195/day.

I control my books for my W-2 job so I know exactly how much tips I make. But the other job, the tips are still up in the air. Before I accepted the job I asked them two to three times in different ways regarding the tips and it felt a little bit like beating around the bush because it just kept coming back to how it's all included in the 180 a day. I asked about W-2 with them and they said they're willing to offer that and it would still be 180 a day in total, but then I thought "what about my tips", but at that point I got tired of asking lol

Upon asking my dad for advice, he said would you rather work at a toxic environment but you know how much you make in your tips? Or would you rather work at a very easy going environment where the people are friendly, and you're possibly losing some money, but youre okay mentally?

Of course I chose the latter. But now I have my resignation letter written out for the hourly job, still haven't submitted however because my parents told me I should double check with the 1099 job if they can offer me W2 instead.

Fuck I'm so sorry this is long guys, but does anyone have thoughts regarding W-2 and 1099 in the grooming industry? What are the pros and cons besides for the taxes? What are your opinions?
 
@teenchill 1099 is illegal unless you are fully your own boss. No workman's comp if you get injured, you're responsible for all your taxes (30%) or so in the US. You decide when you work, there is no need to be there for walk-ins etc. You provide your own insurance if you injure a dog. Anything else is the owner trying to dodge paying payroll taxes. It's illegal. You're "working under the table". If anything happens at that shop you will have zero compensation or financial support. If you get injured and can't work, no disability. Do Not work 1099 unless you are financially ready to cover everything a w-2 job provides out of your own pocket.
 
@thankfullness That's what I thought too! I read something about an assembly bill being passed that groomers are no longer allowed to be independent contractors, which is what baffled me when I saw the contract that they gave me to sign. I mean I took it cuz I needed the extra money and it was part-time, and it really sucks because the couple is nice and very easy-going but I obviously don't want to be in any trouble, if anyone knows me well I'm a goody two shoes and I followed the law lol I've been saving 20% of every check that I get and it scares me because I don't know how much I'll have to pay in taxes you know? I totally know that some people will do illegal things But it makes me wonder how these employers don't know about groomers not being allowed to be 1099 anymore. My hourly job right now used to offer 1099 to some of the past groomers we've had, but he hasn't been ever since the bill was passed. To be fair he's a lawyer and even though he's found loopholes with certain things, there's a lot of things he's very by the book about. Thank you so much for your answer. Do you think it's worth it if I continue to work there if they agree to W-2? I guess I'll be making 24-25/hr. if it's $195/day but its just the tips that's bothering me lol I'm not a confrontational person or the type to ask for money that's why I struggle to continuously ask about it because I don't want to seem greedy
 
@teenchill Wage theft includes tips. I personally wouldn't work for dishonest people but if you need the money and they are willing to fix the issue, maybe? I very much doubt they don't know they are breaking the law. They likely feel no one will find out. I would point it out to them but I don't mind confrontation if it means I get paid fairly.
 
@teenchill The only response they're doing a 1099 is to avoid paying employer taxes and passing that tax onto you. You have to pay self employment taxes, and at 180 a day it's not worth it. Besides 180 a day for a full time grooming job is not enough. And to me, it sounds like they are ripping you off over the tips. They're pocketing them. Oh, and it's not legal to classify you as a 1099. Ask the IRS and see what they say.
 
@teenchill 1099 in grooming is illegal and can cause you a lot of problems with the IRS. NOT WORTH IT! Check out "Groomers Misclassified 1099" on Facebook. There's tons of stories of people going through hell bc they had a 1099 grooming job. If a business owner is okay running a shop illegally, they'll be okay doing other things illegally. If they screw you over, you can not do much about it. It will take years to do the proper paperwork to report them and have it processed. There's so many issues with grooming as a 1099... did they even mention that you need to put 30% of your wages aside to pay taxes at the end of the year?

30% of $180 is $54, meaning you're only taking home $126 of disposable income daily. You should be making more as a groomer. Not only is this position illegal, but it's just not worth the hassle for what you get out of it. There are W2 positions that pay commission (that's how my job operates), and it's a much better way to work than hourly or 1099.
 
@mutambo So I was actually waiting to speak with them before i submit my resignation letter at the hourly job, and I also wanted to wait until after I file my taxes to see how much I have to pay from August to Dec. I've only been saving 20% so I'm a little paranoid lol I only work 2 days a week there, but if I start working full time, they want to give me $195 a day and I know I'll still have to save part of it for taxes, and as hourly it's the same amount so ill be at $24-25/hr, but like no tips i guess which i know is bs!!!!
 
@teenchill Filing your taxes as a 1099 will not be easy or fun. My first grooming job was 1099, and filing was difficult because it's not set up for someone working for someone else. It will ask the name of your business etc, and you don't even own a business to put down. I can not stress enough that you need a W2 position. As others have said, if you hurt a dog by accident, you'll have to pay out of pocket for their vet care if you don't have your own business insurance (which you will need your own insurance if you're 1099). You will not get workers comp if you get hurt and can't work (lost income), and you will not be able to file for unemployment if you are wrongfully terminated. You will make far less than $25/hr once you account for taxes and insurance. It's seriously not worth it. You will make far less disposable income this way. That shop owner is 100% taking advantage of you by paying an unfair base price per day and not operating legally (trying to get away with not paying employee taxes and putting that burden on you). You should be working for someone that cares about you and your career and wants to pay you fairly (commission).
 
@teenchill 1099 is illegal unless it is your own business you are running. The 1099 form is for independent contractors or entrepreneur types. If you are someone’s employee they legally have to give you a w2.
 
@teenchill A w 2 is supposed to be filled out only if you’re an employee. They can not make you fill out a 1099 unless you are a contractor, but yes, you would be filing out a 1099 if you were an independent contractor. You can not be a contractor in this regard though because it is illegal unless you are your own boss. Report the job that is a 1099 to your states local labor board, they take this stuff very seriously.
 
When you fill out as a 1099 you are also not an employee, you are a contractor, think doordash where you are your own boss and you make you’re own hours. You are not “employed” as an independent contractor, you are self employed. This is why this is illegal to have you fill this out.
 
@teenchill A true legal independent contractor basically runs their own business. You should have complete control over your hours and rates. What your “chill” boss is doing is illegal and they only have you classified that way to avoid paying taxes. If you or a dog were to get injured there you would have no protection (a legitimate independent contractor is generally expected to carry their own insurance and stuff like that).

Find a new job completely. I know it sucks but your “chill” boss is a scumbag.
 
@teenchill In the Carolinas, 1099 is the ONLY way groomers in shops work. It sucks, but there is literally no other options around here for groomers. I end up paying around $10,000 in taxes
Edit to add 2nd shop is definitely *ducking you over re:tips. They’re pocketing that extra free cash and that’s stealing from you. I can make an extra $200-$500 a week cash tips… those people suck and I wouldn’t work for them
 
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