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.

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

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.

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EXECUTIVE SPA GROUP 

Beauty Industry Resource Centre

(780) 604 2772

BACTERIA IS A BEAUTY BANISHER

As Service Providers, we aspire to send clients home feeling amazing and relaxed. We know what it takes to make our clients look their best, but do we know how to protect our clients?

Germs and viruses will turn that amazing service upside down!

Let’s take a look at some of the guidelines set out by Alberta Health Services to keep our clients looking gorgeous, glowing and most importantly- germ-free!

Some serious viruses and infections can be and have been known to be spread in salons and spas.

Hepatitis C, MRSA, respiratory disease, fungus and even Hot Tub Folliculitis (an infection caused by a type of bacteria that thrives in poorly sanitized foot baths) have been confirmed.

Are You Inspection Ready?

These are some of the guidelines to follow to help you protect your clients:

• All work surfaces shall be constructed of smooth, non-porous and cleanable materials (i.e. painted drywall, vinyl composite tiles, linoleum or sealed concrete, etc.).
• Work areas must be adequately lit and ventilated.
• Client contact surfaces (tables, chairs, headrests etc.) must have a smooth, non-porous and easy to clean finish.
• Adequate storage space must be available for equipment, instruments and supplies.
• Suitable garbage containers must be readily available, maintained and emptied regularly.
• Approved disinfectants for disinfecting equipment, surfaces and reusable instruments must be available.
• An acceptable skin antiseptic shall be provided for skin preparation and post treatment.
• Items, that cannot be properly disinfected/sterilized or are intended for single use, must be discarded after each client use.
• A puncture-resistant container shall be provided for the disposal of needles, razor blades and other sharp devices or instruments.
• Pigments, cosmetics and other supplies must be labeled and handled in accordance with the manufacturer’s instructions.
• Chemicals, detergents and cleaners must be stored, maintained and prepared in accordance with the manufacturer’s instructions.

The spread of bacteria is completely preventable and should be the #1 priority.

So, remember to follow all sanitization procedures and use the proper level of disinfection tools. Because no matter how gorgeous your client looks when they leave, a bacterial infection traced back to you is a BEAUTY BANISHER!

Please refer to the Personal Service Regulation and the associated Health Standards and Guidelines for a complete list of requirements.

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EXECUTIVE SPA GROUP

**VENUE RENTAL NOT AVAILABLE STARTING JAN 1, 2022 to MARCH 31, 2023.

Who are we?

Executive Spa Group (ESG) is a community beauty industry resource centre.

In the past, we have served our community with employment programs that helped individuals join the beauty industry. Our goal has always been to cultivate Alberta’s beauty industry by promoting skills training and work experience.

Our primary role with individuals is to provide solid career and employment plans, therefore, collaboration with educators and employers is key!

We collaborate with educators.

We connect individuals to educators using multiple methods , for instance, our TRAINING 411 directory. This is an online resource dedicated to inform individuals of their beauty industry training options. In addition, we can provide educators with recruitment services to help them fill classes.

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A venue for educators.

We encompass 2,000 square feet of space equipped for classroom and technical training. Therefore, ESG is the venue of choice for educators.  Take a virtual tour of the facility.

Our venue hours are Tuesday to Saturday, 9am-5pm. Extended hours/days are available.

While our venue is fit to deliver a variety of esthetics and medical esthetics courses.

Edmonton Venue Location

Executive Spa Group is located in the historical yet trendy neighbourhood of Old Strathcona.

Located minutes away from downtown Edmonton, Old Strathcona is a busy, centrally-located neighbourhood. Furthermore, it offers you and your students many amenities. For example, parking, transportation, restaurants, etc.

After training hours, you can enjoy the remarkable food and drink scene Whyte Ave has to offer.

Spend the night on Whyte.

Enjoy VIP treatment with our hotel partners when you choose ESG as your Edmonton venue. Ask us about special rates provided to our guests by the Metterra and Varscona hotels on Whyte. In conclusion, ESG is the obvious choice for your venue rental!

Things to do in Edmonton during your visit.

• Take a stroll down Whyte Ave. Ten (10) blocks of shopping, dining, service and entertainment experience peeking out of every corner!
• Visit The Muttart Conservatory– more than 700 species of plants in 3 climate-regulated biomes. Great for nature lovers!
• Walk the New Walterdale bridge. A beautiful sight at night!

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

***VENUE RENTAL UNAVAILABLE JAN 1/22 to MAR 31/23.***

Welcome to our specialized venue! Our venue makes your course delivery easy, because it is equipped to meet your beauty industry needs.

A venue that fits like a glove.

We are beauty industry experts. As a result, we understand your venue rental needs. Our goal is to make your training event flow as smoothly as possible.

Our venue is fit to deliver a variety of esthetics and medical esthetics courses. For instance,

• Lash Extensions
• Nail Care
• Skin Care
• Makeup Artistry
• Permanent Makeup
• Botulinum Toxin and Dermal Filler procedures

Leave the large luggage behind!

ESG is equipped with 5 spa stations and 5 nail stations. In addition, you can furnish your stations with tools and equipment as needed. We carry a wide selection, from PPE to pedicure basins, ESG has you covered.

Model Recruitment

Models play an important role in service demonstrations and technical training. We can help secure models for your event.

South Central location

Executive Spa Group is located in the historical yet trendy neighbourhood of Old Strathcona. It not only offers convenience, but excitement as well!

Located minutes away from downtown Edmonton, Old Strathcona is a busy, centrally-located neighbourhood. It offers you and your students many amenities. For example, parking, transportation, hotels, and restaurant options.

After training hours, you can enjoy the remarkable food and drink scene Whyte Ave has to offer. In conclusion, ESG is the obvious choice for your venue rental!

Virtual Tour

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