Salon Tax & Compliance

If you own a nail salon, you have probably heard the news. The owners of a large nail salon chain — more than 60 locations — pleaded guilty to federal tax crimes for paying staff under the table. Court records describe more than $116 million in cash compensation that was never reported to the IRS. Since that news broke, we have heard the same reaction from owner after owner: "I'll just pay everyone 100% on check." We understand the fear. But that is not the fix — and reacting

If you own a nail salon, this is the question that keeps tax professionals up at night on your behalf: are the people working in your salon employees, or independent contractors? It sounds like a small detail. It isn't. Getting this wrong is the single most common reason salons get audited — and the penalties can reach tens of thousands of dollars in back taxes, interest, and fines. Here's what every salon owner should understand. Why it matters When you classify a worker as