Did you know that many stylists are misclassified as independent contractors when they should be classified as employees? This widespread issue in the salon industry can be a confusing gray area, but can cost salon owners a lot of money if the Internal Revenue Service conducts an audit.

When tax time comes, an employee receives a W-2 form, while an independent contractor receives a 1099 form.

Want to know if you’re misclassified? Download the FREE 20-page tax guide to help determine if you’re an employee or independent contractor.

Here’s a real-life example from the IRS