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Employee vs Contractor -Beauty Industry Staff

beauty industry careers
Photo Credit: Karolina Grabowska

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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alberta,beauty industry,best beauty career,careers and employment,esg,salon jobs,spa jobs

What is the BEST beauty career?

best beauty career

How do I decide?

Consider this before investing in a beauty industry career. Despite what service attracts you the most, your success in the skills you choose will be self-directed. To clarify, there is more than mastering a skill to reap the benefits of a beauty career.

3 reasons why you want a beauty career.

The beauty about a beauty careers is that they are all boundary-less.

What is a boundaryless career❓

Allan Bird, Professor of Global Business, Northeastern University, defines it as a career path in which individuals must engineer their work lives on their own.

According to Bird, there are 3 principles to the Boundaryless Career:

1. The Boundaryless Career is self-directed.

The beauty industry is not for everyone. It takes more than providing a good service to succeed in this industry. You must also have a sense of self-direction, self-motivation, and of course, an entrepreneurial spirit! For example, creating professional accounts on social media platforms will help you reach new clients.

2. The Boundaryless Career is ill-structured.

Progress, success, and advancement comes from learning and mastering technical skills, meeting new people, and collaborating with new groups. Beauty careers can be very exciting if you do it right!

Above all, having great people skills is important. You don’t have to possess an outgoing personality, but because you direct your own career, you must be personable with the people you meet throughout your career.

Moreover, there is a very attractive flexibility to the beauty industry. Some employers offer 9-5 hours, however, many employers offer flexibility on work schedules due to evening and weekend work. This outside-the-box scheduling allows you more control of time.

3. The Boundaryless Career has psychological benefits and costs.

Some psychological benefits are creativity and self-expression. Beauty careers allow you to express yourself in ways you wouldn’t dream of in conventional careers! Exploring new techniques to bring your ideas to life in your services are ways to attain new levels of success in the beauty industry.

Self expression is an excellent way to promote yourself as a service provider. After all, your presentation speaks for your work.

Other psychological benefits

In addition, you can gain even greater control by working on commission. In this arrangement, you are better able to influence your income and schedule- a psychological benefit that comes from the independence and freedom a career in the beauty industry provides.

As you can see, Alberta’s beauty industry offers exciting beauty careers for those who possess the right qualities!

Do you?

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