Booth Rental Versus Employee Decision Worksheet

Nail Technician | PublicProof Academy working document

Work through the classification, licensing and insurance consequences before you put anyone in the second chair, and record the written answers you got.

Business

State or jurisdiction

Prepared on

Owner

Official source saved

Next review

Control test - answer honestly

Do I set their working hours?
Do I set their service prices?
Do I supply their products and tools?
Do I require a uniform or dress code?
Do I direct how the service is performed?
Do they take their own bookings and keep their own client list?
Do they carry their own professional liability insurance?
Is there a written rental agreement with a fixed rent independent of their revenue?

Licence layer - confirm with the board in writing

Does the rented booth or suite need its own licence in this state?
Who holds the establishment licence for the space - owner or renter?
Must the renter be listed on the shop application by name and licence number?
Does the renter need to be the designated manager or professional-in-charge?
Is there a separate renewal date and does the renter licence die if unrenewed?
Board contact, date asked, date answered, reply saved where

If employee - what I must set up

EIN and payroll registration with the state
Withhold and deposit income tax, Social Security and Medicare; pay the employer match
Unemployment tax registration
Workers compensation policy in force before the first shift
Written hazard communication programme and chemical safety training
Wage, hour and break compliance for the state
Employee handbook and disciplinary process

If booth renter - what I must set up

Written rental agreement reviewed by a local attorney
Proof of their current practitioner licence on file, with expiry diarised
Proof of their own professional and general liability insurance
Confirmation of who holds the establishment or booth licence
Separate payment processing so their revenue is not mine
Written sanitation standards they agree to follow inside my facility
Form W-9 collected and 1099 process understood

Use rule: Education and organization only. Record the agency, official source, checked date, cost, proof saved and responsible person for every consequential requirement. Unknown means stop and confirm. Example rows are labeled EXAMPLE and are not your data.