Pet Groomer Guide To Handling 1099 Misclassification and Why It’s Important to Be Aware of It

By Team GroomLink Published on January 10

Pet Groomer Guide To Handling 1099 Misclassification and Why It’s Important to Be Aware of It

As a pet groomer, whether you're working at a salon, running your own mobile grooming business, or working as an independent contractor, it’s important to understand your employment classification. This means knowing whether you're classified as an employee (W-2) or an independent contractor (1099).

Sometimes, employers can accidentally misclassify workers, which can lead to confusion about taxes, benefits, and your rights at work. In this post, we'll go over what misclassification is, why it matters, and what you can do if you think you've been misclassified.

What is Misclassification?

Misclassification happens when a business labels you as an independent contractor (1099) when you should be an employee (W-2), or vice versa. For example, a pet grooming salon might treat you like an employee—by setting your hours, providing tools, and overseeing your work—but classify you as an independent contractor. This can lead to some issues with taxes, benefits, and job security.


Why It’s Important to Be Aware of Misclassification

Being aware of your classification is key to understanding your rights and responsibilities. Here are a few reasons why it’s worth paying attention:

Taxes

The most immediate difference between being a W-2 employee and a 1099 independent contractor is how taxes are handled:

  • W-2 Employee: Your employer takes care of withholding taxes, Social Security, and Medicare from your paycheck. At the end of the year, you receive a W-2 form that summarizes your earnings and the taxes that have already been paid on your behalf.
  • 1099 Independent Contractor: If you're classified as an independent contractor, you're responsible for paying your own taxes. This means you’ll need to track your earnings and pay both income tax and self-employment tax, which covers both the employer and employee portions of Social Security and Medicare.

If you're misclassified as a 1099 contractor when you should be a W-2 employee, you could end up paying more taxes than necessary, since no taxes were withheld from your pay.

Benefits

Employees are generally eligible for benefits that contractors aren't. This includes:

  • Health insurance
  • Paid time off (PTO)
  • Retirement contributions
  • Workers’ compensation
  • Unemployment benefits

As a 1099 contractor, you’re responsible for securing your own benefits, often at a higher cost. If you're treated like an employee but classified as a contractor, you may miss out on these benefits.

Job Security and Legal Protection

As a W-2 employee, you’re typically protected by labor laws that guarantee things like:

  • Minimum wage
  • Overtime pay
  • Workers’ compensation if you’re injured on the job
  • Unemployment benefits if you lose your job

1099 contractors don't have the same protections, as they’re considered self-employed. If you’re treated like an employee but classified as a contractor, you might be missing out on some important legal protections and safety nets.


Signs You Might Be Misclassified

If you're wondering whether you're properly classified, here are a few signs that could indicate you’re misclassified:

  • Set Hours: If your employer tells you when to work and how long to work, you may be an employee.
  • Employer’s Tools: If the business provides all the equipment you need to do your job, this could indicate an employee relationship.
  • Lack of Autonomy: If you don’t have control over your work schedule or how you do your job, this is more common for employees than for contractors.
  • No Taxes Withheld: If taxes aren’t being taken out of your paychecks, you might be classified as a contractor, but if your employer controls your hours and duties, you may actually be an employee.
  • Exclusive Work: If your employer expects you to work exclusively for them or limits your ability to work for others, that’s more in line with an employee status.


What to Do If You Think You’re Misclassified

If you think you've been misclassified, here’s what you can do:

Talk to Your Employer

Start by having a conversation with your employer or salon owner. They may not realize that the classification is wrong, and bringing it up in a clear, respectful way can often resolve the situation.

Review Your Job Description

Look over your job duties, your schedule, and the tools you use. Do they align more with an independent contractor's work style or an employee’s? This can help you understand whether your classification is accurate.

Seek Professional Advice

If you’re unsure, it can be helpful to talk to an expert, like an employment lawyer or an accountant. They can help you determine if you’re being misclassified and guide you on next steps.

Correct the Classification

If it turns out that you’re misclassified, your employer may need to correct your status. This could involve switching you to a W-2 employee status or adjusting your pay structure. If they’re not willing to make the change, you may need to contact your state’s labor department or the U.S. Department of Labor for guidance.


In Conclusion

Misclassification is an important issue for pet groomers to be aware of, especially since it impacts how taxes are handled, whether you get benefits, and your overall job security. By knowing the difference between a W-2 employee and a 1099 independent contractor, you can better understand your rights and ensure you’re being properly classified.

If you suspect that you’ve been misclassified, it’s worth talking to your employer to get clarification. If necessary, seek professional advice to correct the issue. It’s about making sure you’re getting the rights, benefits, and protections you deserve.