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In this episode of The Esthetician Podcast, Kari Jo Patterson explains esthetician payroll, 1099 vs W2 classification, employee pay structure, payroll taxes, and how to hire employees the right way in a beauty business. If hiring feels scary because you don’t understand payroll, this episode breaks down the systems, commission structure, and tax setup that help estheticians grow profitably.

• Why fear around payroll usually comes from not understanding it 
• How a 1099 misstep creates a structure problem and brand risk 
• What an IRS audit teaches about penalties and misclassification 
• Why true 1099 roles are rare in the beauty industry 
• Using the IRS classification factors and getting clarity before hiring 
• Separating tax money into a dedicated bank account 
• Hiring a payroll service or using tools like Gusto or Square 
• Why commission above 45% breaks profitability 
• How payroll taxes change the real cost of commission 
• Using a draw to cover base pay while an employee builds 
• The hidden downside of 1099s for workers at tax time 
• Why fear-based business decisions keep backfiring 

If you want to hire but do not know how to set it up, grab my course Master Your Payroll, Motivate Your Employees and use the code PODCAST for 50% off.   Copy this link: https://stan.store/EstheLaunchAcademy/p/master-your-payroll-and-motivate-employees

If you’re booked but not making money, you need to start with your numbers.
Download my FREE  “Diagnose Your Business” tracker in the show notes and I’ll show you exactly what to track.

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