For ICs, question about pay

[malibutan]

Just browsing over old posts and there seems to be a ton of different ways pay is handled! It was very interesting.

At our shop, we present a daily invoice of services rendered, along with the amounts for each in our individual envelopes. At the bottom we tally up all credit card, gift card and cash totals, along with any retail sold (also noting any discounts or coupons.) At the end of the week, we are paid by check for our 60%, 10% of retail sales, and any cc/gc/check tips. If we are paid in cash for a service, we keep our own change for those, put the shops 40% in our envelope and are able to keep our 60%. If we have a cash retail sale, we keep our 10% as well, putting in the shops 90%.
We all have our own little cash boxes in the office with our change, and we use carbon copy receipt books so we always have our own copies for records.

We used to put the full cash amount in and would get paid that at the end of week as well. In addition, any tips (cc/gc) we could take out of the shops money box each day. There was a problem with that, as money was disappearing but we all are fairly sure it was the owner's daughter taking it out as there were issues going on with her at the time and she was around all summer. The people there have been there awhile, I couldn't see any of us taking the owner's money knowing how hard she works and the problem didn't start until that summer.

It seems more complicated written out than it is in reality and it works out very well for everyone. I think it's fair and the owner has thought out a pretty good system. How does yours work, whether you're an IC or have ICs? Be interesting to see the different ways people have worked out.

 

[Fins+Wings{8 - 88}]

For ICs, question about pay

We work a similar system for cash payments for our ICs, specifically tailored to the realities of nationwide mobile services.

we work on a semi=monthly pay period. I think our bookkeeper would hang herself if we tried to reconcile daily!

Any services paid in cash are considered a Cash Advance against earnings. We deduct 100% of the cash payment from the earnings from the pay period. Very rarely does anyone end up owing us $$ at the end of the pay period, but if they do, we roll it over to the next one. They don't have to go to our bank and deposit the cash they collected or send us a check or pay the hotel their % for the services paid in cash.

I wish we could ban cash - it complicates the accounting!

Our techs keep copies of the receipts from all services, which shows charged tips and 2x per month we reconcile their records with ours and pay the difference, usually via Direct Deposit.

 

[Horse Lover]

For ICs, question about pay

Oh yeah, a larger business such as yours has to have a more streamlined payroll plan, definitely. The cash plan makes sense. We're much smaller, the owner (also a CMT), two other pt CMTs, a pt nail tech and me, (CMT/aesth.). The owner and I are the only FT people, out of choice. I like being able to just keep my 60% of any cash sales because since we don't get our cc/gc tips until payday, it gives me $$ in my pocket during the week. Usually I just put most of it in my cashbox until payday, then deposit it but it's nice to have that extra there if I need it during the week. Plus it enables me to have plenty of change when someone pays with a $100 bill!

 

[Shiloh]

For ICs, question about pay

At my IC gig, they cut me a check once a month. I turn in a time sheet that lists all my clients (time and rate), & I provide my copies of the handwritten receipts for each client. Any tips I receive are mine to take home in cash.

 

[Spraynard Kruger]

For ICs, question about pay

I am an IC at a chiro's office. We do a rent based verses a %. Every month I pay him his rent and I pay for the office manager to schedule my appoints. Every other week I invoice him any money owed me from insurance clients and clients who paid using their credit card. I deduct the CC fees from the invoice. Clients who write checks or use cash pay me directly.

I set my own rates for the non-insurance clients. For the health insurance clients I usually get $65 per hour, but there are a few plans that only pay $50.

At first I was nervous doing a rent based verses a comission split, but I do more that enough massages to cover rent and pay myself.

 

[pixiemeup82]

For ICs, question about pay

At my previous job it was a bit screwy. I paid rent rather than a perceneforum.xxxe. We had an online scheduling system that the owner (a fellow massage therapist) strongly suggested we use. Clients really loved being able to schedule online.

The credit card machine was hooked up through the scheduling system. When a client would check out, we'd put their payment details in the online scheduler, whether it was cash (paid direct which we got to keep), check (if it was in our name or personal business name, we got to keep it), credit card, or even a trade.

Then twice a month the owner would cut us our checks, minus fees for using the online scheduler and credit card machine. Even if a client paid us cash, fees would be taken out. It never happened that all clients in a pay period paid cash, but I suppose if that had happened, I would have owed the owner money.

In my opinion having individual merchant accounts would have worked out better. However, the owner is known for being INCREDIBLY nosy and liked to keep tabs on who we worked on and how much money we were making. When the nail tech told him she didn't want to use the online scheduling system any more (which had always been an option for us, but it was frowned upon because we couldn't schedule clients for each other or schedule packages, nor could clients schedule online), he threw a fit, presumably because he couldn't keep track of her clients or money any more.

 

[ilovemuffins235]

For ICs, question about pay

However, the owner is known for being INCREDIBLY nosy and liked to keep tabs on who we worked on and how much money we were making. When the nail tech told him she didn't want to use the online scheduling system any more (which had always been an option for us, but it was frowned upon because we couldn't schedule clients for each other or schedule packages, nor could clients schedule online), he threw a fit, presumably because he couldn't keep track of her clients or money any more.

A landlord in a rental agreement has the right to require lessees to use the scheduling system.

The owner is not being nosey, just exercising his rights to ensure he is being adequately compensated for the rental. For our spa, which we rent the space from a national commercial real estate developer, we have to submit monthly sales reports as well as our monthly sales tax returns and annual income tax returns. Not at all nosey.

 

[just me]

For ICs, question about pay

It wasn't required, it was strongly suggested. And this man IS nosy, plain and simple. Keeping track of fees owed is smart. Keystroke logging is nosy in the situation in which it was used. Standing around the corner and listening in on (private) conversations with clients and then trying to discuss their issues with me is nosy (doors are closed, but people are loud...). I've got a million and one examples, but not enough time so you'll just have to take my word. Let's just say there's a very good reason why he's lost 95% of his ICs in just over a year, and the few who remain are looking for a new place to practice.

 

[Bella310]

For ICs, question about pay

At my last job as an IC I was paid $25 per hour of massage and I was given a check at the end of the week.

And the time before that I was an IC at a chiro's office and I gave the Dr. 25% of what I made