savedbygrace71
New member
Hey everyone,
I've been a dog groomer for around 7 years now and I've always been W-2, since it's just easier to let the people I work for handle my taxes out of my paycheck.
However, recently the owner of grooming salon I've been working for for over 3 years now has sold the business to a new owner. And I've decided that I just need to go ahead and switch over to 1099 for a few reasons.
In the recent past, my boss's accountant wasn't taking enough federal withholding out of my paychecks, so for the past two times we've done our taxes, we've owed money for not putting enough federal withholding in it. And so when we did our taxes in February and realized we were dealing with the same issue as last year, I filled out a new W-4 and put in the extra withholding how much I needed taken out every week to not owe money. But a month and a half latee, even now, when I check my pay stubs, they still aren't taking enough out of withholding. So with being 1099, I'm in charge of my taxes. It's more work on me, but it's better that way. And even my boss said it's not that hard, you just have to know how much to put back for taxes.
Another benefit I look forward to is being able to have control over my own prices. I live in a relatively small town, and alot of our clientele is older. Which is why I think our prices are a little bit cheaper than others. But honestly, there's so many regular grooms I do where I feel like I'm being cheated out of my own time and effort by the price of the groom. I don't plan on jacking my grooming prices up, but I'm still doing $45 grooms for a something that takes me around 2 hours. I thinking starting price should be $55.
Anyway, there's other benefits, and I just feel like it's better for me to go 1099 and it'll be easier for the new owner (who is younger and this is her first owned business, but she is a groomer too) to not have to worry about having a W-2 employee.
But the reason why I'm making this post is that I'm having trouble figuring out what exactly my next steps are in transitioning over to 1099.
Like what's the very first thing I need to do? Do I need to legally having liability insurance as an independent contractor or is it just safe to have one? And if so, what's a good place to get liability insurance as a dog groomer? Do I need to buy my own payment system like a Square? My coworker who's 1099 has her own, and so when checkouts her grooms, she uses hers and not the business Square.
I just have a hard time doing stuff like this because I work better with a step by step breakdown of what I need to do. But I know this is the better option for me.
Thank you so much!
I've been a dog groomer for around 7 years now and I've always been W-2, since it's just easier to let the people I work for handle my taxes out of my paycheck.
However, recently the owner of grooming salon I've been working for for over 3 years now has sold the business to a new owner. And I've decided that I just need to go ahead and switch over to 1099 for a few reasons.
In the recent past, my boss's accountant wasn't taking enough federal withholding out of my paychecks, so for the past two times we've done our taxes, we've owed money for not putting enough federal withholding in it. And so when we did our taxes in February and realized we were dealing with the same issue as last year, I filled out a new W-4 and put in the extra withholding how much I needed taken out every week to not owe money. But a month and a half latee, even now, when I check my pay stubs, they still aren't taking enough out of withholding. So with being 1099, I'm in charge of my taxes. It's more work on me, but it's better that way. And even my boss said it's not that hard, you just have to know how much to put back for taxes.
Another benefit I look forward to is being able to have control over my own prices. I live in a relatively small town, and alot of our clientele is older. Which is why I think our prices are a little bit cheaper than others. But honestly, there's so many regular grooms I do where I feel like I'm being cheated out of my own time and effort by the price of the groom. I don't plan on jacking my grooming prices up, but I'm still doing $45 grooms for a something that takes me around 2 hours. I thinking starting price should be $55.
Anyway, there's other benefits, and I just feel like it's better for me to go 1099 and it'll be easier for the new owner (who is younger and this is her first owned business, but she is a groomer too) to not have to worry about having a W-2 employee.
But the reason why I'm making this post is that I'm having trouble figuring out what exactly my next steps are in transitioning over to 1099.
Like what's the very first thing I need to do? Do I need to legally having liability insurance as an independent contractor or is it just safe to have one? And if so, what's a good place to get liability insurance as a dog groomer? Do I need to buy my own payment system like a Square? My coworker who's 1099 has her own, and so when checkouts her grooms, she uses hers and not the business Square.
I just have a hard time doing stuff like this because I work better with a step by step breakdown of what I need to do. But I know this is the better option for me.
Thank you so much!