Many businesses in the detailing and tinting industry pay their workers by check and issue a 1099 at the end of the year calling them “independent contractors”. Paying anybody under the table is illegal and bad business.
So what exactly is “Auto Detailing Business Best Practices”? It’s a fairly simple concept actually. All of these “best practices” actually contribute to developing more business and building a great reputation. Our shop doubled our sales and tripled our profits after implementing this for only 2 months. Those kinds of results made it worthwhile to keep promoting and improving these ideas.
When you are in the detailing business, you need to make sure that all your bases are covered. You have issues flying at you from everywhere. Employee issues, insurance, taxes, equipment breakdowns, growing the business, marketing, sales, etc., etc. Pretty much a standard day in any entrepreneur’s life, but the difference with the detailing business is that most of the heavy lifting is done by you, the owner.
I’m going to come right out and say it. 1099 contractors are almost always employees. Almost always is probably shooting low because as far as detail shops and similar businesses, you fail the IRS criteria test probably over 90% of the time. I know this may surprise some of you reading this, but if you didn’t think this was the case you probably wouldn’t be here reading this. I wrote 5 reasons your 1099 contractor is actually your employee to highlight this important compliance subject for small businesses.
Many detail shops have big problems classifying their employees correctly. Why? Mainly because some shop owners try to save a few bucks on the taxes paid for employees. So they think they can pull a fast one and pay their employees cash under the table. Even worse, some shop owners will tell their workers that they are “independent contractors” and just cut them a check each week. Either way, both methods are illegal. This behavior is the reason there are so many looming IRS problems for small business detail shops in this country. What’s worse is you hurt the people working for you. And you make the entire industry look like fly by night operators when you get caught.