alberta,beauty educator,student aid,student finance,student loans

What is the difference between student loans and student finance?

Is there a difference in the terminology?

Over the years government branches, such as Alberta Education, change their names and their program names to encompass changes within their organizational missions and goals.

Student aid has been known as student finance in the past, but within this umbrella term of “student aid” falls multiple methods of financial assistance for students such as loans and grants.

Government assistance to pay for your beauty studies

In Canada, both provincial and federal governments work together to help people access post high school education. Beauty studies is one of the many fields supported by government student aid. However, relatively few training providers offer student loans. The reason for this ultimately comes down to esthetics not being a regulated industry in Alberta.

Is regulation a good thing?

This depends on who you ask. Not being regulated means that there is no governing body to guide us as a whole. It means freedom, but can there be too much freedom?

On the other hand, cosmetology is a regulated industry in Alberta. They have a governing body that oversees all hairstylists, salons, and training providers in Alberta. If you’re looking for student loans to pay for cosmetology school, you’re in luck! Because cosmetology is regulated, many training providers in Alberta will be regulated. This often means that they will be able to offer government loans to students in full time and part time programs. It also means that there won’t be too many trainers to choose from, because becoming a cosmetology trainer is a long process due to regulation.

Unlike cosmetology, esthetics training providers do not have rules to follow. As a result, it’s very easy to become an esthetics trainer and the selection becomes overwhelming. In cosmetology, a governing body determines you have met the requirements to call yourself a trainer. In esthetics, the trainer themselves determines that they have met any requirements to call themselves a trainer.

Loans, grants, and repayment

As mentioned earlier, if hairstyling is your dream career, there is definitely government student aid available to you. However, if you want to learn an esthetics skill, such as skincare or microblading, student financial aid will be hard to come by. Federal government assistance is available for full time esthetics programs only, while provincial funds are available for some part time studies. You must be at least 18 years of age to be eligible.

Loans

Loans are available for programs that will result in a certificate at participating beauty educators. Loans must be paid back after completion. If you do not finish your studies you’re still responsible for paying the loan you accepted thus far.

Grants

Grants are often given as a supplement to the loan to students that meet certain criteria, amongst them, low income students or students with disabilities. Usually grants do not have to be repaid. However, you should be advised that grants are repayable if you drop out of your program or if your eligibility changes in the middle of the training program. So don’t be a beauty school dropout!

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beauty studies,esthetics training,student loans

Accessing government student loans for your beauty studies

Can hair and esthetics students access government loans?

In short, yes, hair and esthetics students can access government loans. However, not every program/course available to students offers the option.

So many courses to choose from!

If you haven’t noticed, there is a plethora of beauty industry courses to choose from. Whatever your final destination is in the beauty industry, you have multiple paths you can take to get there. For example, you can start slow and take one course at a time. Technical training usually last from one to four days. It is common for trainers to share the theory component with students one to two weeks before the technical training takes place.

Not all beauty courses offer a technical component. Covid brought a rise of online beauty courses that persist today.

Learn at your pace

While hair is a regulated industry in Alberta, esthetics is not. Therefore, short courses can kickstart a career in personal care services. After acquiring a clientele, you can take other courses to add to your service menu. Before you know it, you have become a fully licensed esthetician, and you did it at your own pace 😉

Learn on the job

Learning on the job is another option for both, hair and esthetics. Learning on the job for hair students is called an apprenticeship. Because hairstylists are regulated in Alberta, apprenticeships are monitored closely to maintain industry standards. While you still have to attend technical training at some point of your apprenticeship, it is a sliver of time and costs a fraction of attending a full time program.

Learn full/part time in school

This last option is the only option that offers the capacity for student loans. However, not every trainer that offers full and part time programs offers government student loans in Alberta. Fortunately though, people looking for full time studies have a few options for trainers in Alberta that offer government student loans.

If accessing government loans is the only option for you to pay for schooling, keep in mind that you yourself have to be eligible for student loans.

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beauty employers,beauty jobs,post a beauty job

Post a Beauty Job

ATTN: Beauty Industry Employers

We would like to invite you to post your current/future job posting with Executive Spa Group.

Our job bank is free, fast and easy to use. You can post multiple listings for up to 30 days at a time. Candidates submit their resume and other application material directly to you, thereby affording you full control of the screening and hiring process.

By advertising in our Job Bank, you will ensure your posting is seen by thousands of beauty professional job seekers across Alberta.

No account necessary

Simply complete our template outlining the skill set you require and submit it for posting. It’s that easy. And because Executive Spa Group specializes in the beauty industry, you’ll find it easy to specify exactly what you’re looking for.

Why post with Executive Spa Group?

  • Alberta Beauty Industry-focused
  • Visited by Service Providers in Alberta looking for their next employment opportunity
  • Attracts top industry employers and job seekers
  • Contains up-to-date job listings in Alberta
  • Easy-to-use
  • Always free to use!

Click here to begin posting your job listings with Executive Spa Group.

Executive Spa Group
(780) 604 2772
executivespagroup.com

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beauty industry contractor,beauty industry employee

What is the difference between an employee and a contractor?

Defining the difference

  • An employee works under an employee/employer relationship.
  • A contractor carries out their work under an independent business/contractor relationship.
  • Chair renters and room renters are self-employed.

Four major differences

We will explore 4 different categories to help you understand the difference between an employee vs contractor:

1. Working Conditions

👉 Pay Schedule

Employees are paid a wage, commission, or a combination on a regular schedule.

Contractors are usually paid solely on commission and receive payment after submitting invoices.

On the other hand, chair or room renters pay a monthly rent to the salon/spa owner.

👉 Training

Generally, the employer pays for an employee’s additional training. Meanwhile, contractors pay for their own training costs.

👉 Hours of Work

Chair or room renters may work during their hours of choosing within the salon’s hours of operation.

In contrast, the employer determines an employee’s hours of work.

2. Tools and Equipment

All necessary tools and equipment are provided and maintained by the employer. However, employees can choose to work with their own tools.

A good service provider will extend the life of any tool or equipment by using it properly and sanitizing it after every client.

On the other hand, contractors provide and maintain their own tools and equipment. Moreover, chair or room renters rent space to provide services.

3. Taxation Deductions/Reporting

A contractor’s pay does not include tax deductions. Subsequently, contractors submit their own federal and provincial tax deductions to the CRA.

On the contrary, an employee’s pay includes deductions. After that, deducted taxes are submitted by the employer to Canada Revenue Agency (CRA).

SPECIAL NOTE: It is the salon owner’s responsibility to pay EI employer premiums of chair/room renters.

Employees do not collect GST from their clients. Chair or room renters must collect and remit GST if their gross annual revenues reach over $30K.

4. Employment Laws

Alberta’s Employment Standard Code entitles employees to general holiday pay, overtime pay, and minimum wage, in addition to some other benefits.

Unlike employees, the Alberta’s Employment Standard Code does not protect contractors.

In conclusion, there are major differences between an employee vs contractors.


EXECUTIVE SPA GROUP
Beauty Industry Resource Centre
(780) 604-2772
info@executivespagroup.com

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Renting Chairs: Who is responsible for EI?

DO I HAVE TO PAY EI FOR CHAIR RENTERS?

Did you think Employment Insurance and Chair Renters would never come up in the same sentence?

In 2019, CTV NEWS Saskatoon did a report on how salon owners that rent our chairs are impacted by Employment Insurance fees imposed by the Canada Revenue Agency (CRA).

The report focuses on Stacey Zielinski , owner of The Beach Beauty Bar in Martensville, Saskatchewan. Like many others, Stacey was under the impression that chair renters are independent contractors and therefore are not governed under employment laws and regulations.

Luckily for Zielinski, her tab was not too high, as only 1/5 hairstylists was a chair renter. This got us thinking though,

how does this impact the industry?

What does this mean for salon owners who only rent out chairs?

Renting out chairs to hairstylists has always been an attractive option for salon owners. Renting out chairs produces consistent income, removes employee-related issues, and was formerly believed to eliminate the cost of wages and MERCS.  

It is widely believed that the salon owner does not pay money to the renter; but they do however collect money from the renter. Typically, the hairstylist pays a monthly fee to offer services to their growing clientele from an already established salon.  In exchange for this fee, the salon owner allows use of the chair and fixtures during operating hours.

Contrary to popular belief, salon owners are liable to pay Employment Insurance fees to the CRA for chair renters. Normally, independent contractors from other industries are not eligible for EI, however, there is an exception for barbers and hairstylists.

Normally, EI is paid to employees based on the hours worked per pay period. Because chair renters dictate their own hours, the CRA calculates EI fees on the number of days the chair renter offered services in the establishment.

Why is there an exception for barbers and hairstylists?

As it was explained by a CRA representative, this exception was put into place to secure the income of a hairstylist in the event that the salon owner is no longer able to provide the chair renter with a space to work from. Examples are salon owners who are evicted from their rented space or go out of business.  

What is the difference between independent contractors in the beauty industry versus other industries?

Nothing really. We searched for answers but could not find a clear explanation for this exception.

The exception to the exception.

While a salon owner must pay the employer portion of EI fees for independent contractors, this fee is eliminated IF the chair renter is incorporated.

What is the difference between a sole proprietorship, a partnership, and a corporation?

All of the above are forms of entrepreneurship. They differ in a few ways including the annual costs and taxes payable to the CRA. The main difference is that in a sole proprietorship or partnership, the business is an extension of you (and your partners if applicable) whereas a corporation is viewed as an entity external to you.  It even has its own SIN, however, it’s called a BN (Business Number).

There are many benefits to registering your business as a corporation. Learn more.

Where does this legislation come from?

It is believed that this legislation was created to protect the income of women and single mothers based on the occupation’s demographic at the time the legislation was created.

Two conditions apply to this employment insurance regulation:

  1. The barber or hairstylist offers services out of the establishment.
  2. The barber or hairstylist is not the owner of the establishment.

What if the salon owner also owns the building?

Unfortunately, it doesn’t matter. Salon owners who own the building must also pay EI fees.

What if the hairstylist does not pay EI?

Unfortunately, it doesn’t matter. The onus is on the salon owner to pay the employer portion of a chair renter’s EI whether or not they pay their own premiums.

Does this legislation affect room rentals for esthetics services?

No, this legislation only applies to Hairstylists and Barbers at the time this article was published.


EXECUTIVE SPA GROUP 

Beauty Industry Resource Centre

(780) 604 2772

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Executive Spa Group

info@executivespagroup.com
(780) 604-2772
executivespagroup.com
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