Article Published in Stylist Magazine, March 2014
While we beauty professionals focus on working with clients, marketing our salons, learning new skills, socializing with colleagues, etc., we likely neglect the one thing that happens regardless of what we’re doing: aging. Even if we were content to “age gracefully” (a phrase with an indeterminate/flexible meaning), there’s still action required to make the unavoidable more tolerable. No, I don’t mean saving money for a face lift. We should be devising strategies to manage its effects on our selves and our businesses. Otherwise, we won’t be prepared for this process that will certainly bring changes, some expected, others not.
Within the beauty industry, it would seem that the greatest concern anyone could have about the aging process is his or her appearance. As the media so effectively reinforce, who doesn’t want to be more beautiful and youthful? Undoubtedly, our industry plays a significant role in creating and meeting the demand for “anti-aging” treatments for skin, hair and nails. However, products and services that supposedly target a specific age group or beauty/health concern don’t interest me unless there’s scientific research to support their effectiveness. My professional credibility would suffer if I hyped questionable products/services the way that some do. I’d rather disappoint a client with the truth than mislead with false hope. Clients deserve the truth, even when it hurts.
Speaking truth, if the aging process were limited to looking old, it wouldn’t be so scary. (Apologies to those who are very afraid of wrinkles, age spots and hair loss). There are plenty of beauty fixes available, depending on your resources. It’s unfortunate that the supremacy of beauty distracts from a more important factor in the aging process: overall health. If priorities were different, we’d be obsessed with improving the health of our bodies and minds. Spend anytime around older people and you’ll realize that most of them are more concerned about their physical and mental health than their appearance. For those afflicted with diseases associated with aging (cancer, diabetes, dementia, arthritis, heart disease, osteoporosis, etc.), their quality of life has been severely compromised. No matter how good someone looks, what’s the point of living longer if those years are miserable/painful?
We can take actions now (improve our diet, exercise our bodies and brains, stop smoking, get adequate sleep, invest in health insurance, eliminate toxic relationships, etc.) that will have both immediate and long-term benefits. There’s no reason to wait when we could live better lives now and in the future.
Within our businesses, we need to acknowledge how aging could affect our abilities. Working safely to protect ourselves from injury should take precedence, no matter how old we are. For example, I wear disposable gloves to reduce my exposure to germs and chemicals. Furthermore, I avoid eye strain with suitable lighting and physical strain with good posture and ergonomic movement. When newly licensed and much younger, I filled my schedule to work 60 hours a week, which was neither ideal nor sustainable. I cannot work those hours anymore, either physically or mentally. With time and experience, I learned to limit hours to match my energy. Mastery of my schedule gives me the great advantage of efficiency and organization.
The longer I provide beauty services, the more I’m interested in exploring how to best serve clients and prolong my “quality of life” in the salon. I don’t plan to retire anytime soon, so it’s very important that my clients enjoy their services and I enjoy my clients. I can’t be complacent with the ones I currently have, or obsolete for potential clients in the future.
Thinking about the future raises some important questions for all of us: Do we need to adapt to clients as they age? Imagine having a clientele that was limited to people your age, plus or minus five years. Forget that, I’m bored just thinking about it! In my experience, a more diverse clientele provides greater opportunities for professional growth, meaningful interaction and financial success. At my salon, any “accommodations” for older clients already exist because they’ve always been a consideration. When you treat older clients with respect and kindness, it reassures younger clients that they will be valued later. And they’ll feel comfortable referring their older friends and family to you.
There’s no need to replace my clients when they get older, unless they’re unable to receive beauty services. As long as they want my professional expertise, I’ll do my best to make their nails look beautiful.
What if our clients replaced us with someone younger? We wouldn’t want clients to discriminate against us based on our age. Younger, less experienced manicurists will always be entering our profession. If we don’t stay current with our education and/or our skills diminish, we will lose clients to them. After more than twenty years as a licensed manicurist, I still expect progress in the quality of my work, and greater efficiency in the means (equipment, tools, products, procedures, etc.) of achieving it. When I cannot meet my own expectations, I’ll know the time is right to retire.
By Jaime Schrabeck, Ph.D.
Tuesday, April 1, 2014
Saturday, March 1, 2014
Meeting Tax Obligations
Article Published in Stylist Magazine, February 2014
We may think that obtaining a beauty license makes us professional, but nothing demonstrates our commitment to being professional like paying our taxes. Granted, none of us aspires to this industry because we want to give the government its due, but it’s one of our greatest responsibilities nonetheless. Regardless of our personal motives or career goals, the government does not value our “artistry,” “technical expertise” and/or “client relations;” beyond basic consumer safety, it’s main concern is financial. Whether we work alone or with others, through good economic times and bad, our tax returns represent the financial health of our salon businesses, and our success as beauty professionals.
Before proceeding, let me clarify that I’m not a tax professional, nor should anything I write be taken as legal advice. You’re responsible for your own tax obligations, and I strongly recommend that you seek guidance from a qualified professional to ensure your compliance with federal, state and local tax laws and regulations. That being said, I hope you find the remainder of this article informative.
At the federal level, the Internal Revenue Service (IRS) relies on our voluntary compliance to accurately report our income under penalty of perjury. The effort this takes varies according to your employment status; an employee completing Form 1040 (U.S. Individual Income Tax Return) using information provided in a Form W-2 (Wage and Tax Statement) has a fairly simple task. As a salon owner with employees, I have a more complex task, which includes a Schedule C (Profit or Loss From Business, Sole Proprietorship). Beauty professionals who have incorporated their businesses, and/or have business partners have different forms to complete. Needless to say, but I’ll say it anyway, the more complicated the circumstances, the more important it is to engage a tax professional.
Timely payment of taxes due should be easy by having the appropriate amount of money withheld from paychecks or making quarterly estimated tax payments throughout the year. That may sound condescending and insensitive, particularly toward those who may struggle to pay their taxes, but it’s not meant to be. Money is one of those subjects that's hard to discuss without the risk of someone feeling uncomfortable or inadequate. Our relationship with money is very personal and private, typically not something we readily share with others. We all could benefit from knowing how to better manage our personal and business finances.
Paying our taxes impacts many aspects of our financial lives. For example, filing successive tax returns determines our ability to obtain credit and qualify for loans, and the amount of future retirement benefits through the collection of Social Security taxes, known as FICA (Federal Insurance Contributions Act) and/or SECA (Self-Employment Contributions Act). The legal consequences for NOT filing tax returns or falsifying information are civil penalties (underpayment tax penalty and interest, which can accrue indefinitely) or criminal prosecution. With the exception of tax attorneys, most people want to avoid any involvement with the IRS.
I've written extensively about being professional; frankly, I’m tired. Not of doing nails for my clients, but of explaining to other manicurists and salon owners why they should do them legally, and to consumers why professionalism matters. Is it really that hard to do the right thing? Given the proliferation of salons and individuals who could generously be described as being “unprofessional,” it's obvious that you don't need to be professional to make money in the beauty business. If many consumers don't seem to care whether or not a salon and its service providers hold valid licenses, do you think they care if taxes have been paid? Probably not, and that’s unfortunate.
When we’ve filed and paid our taxes, there's no certificate to display on the wall, or any other acknowledgment of our commitment to the beauty profession. A tax return is different from the licenses issued by our state governments which allow us to provide services for compensation in the first place. And while I don’t tolerate unprofessional behavior, I don't spend my days obsessing about it either. Setting a good example is enough work. It's really up to you to develop a clientele and associate yourself with colleagues and businesses who support your efforts to be professional, including meeting your tax obligations.
I could probably strategize more tax savings, and invest even more for “retirement,” but I’m very comfortable with my financial position. It’s mid-January, and I’m just days away from submitting my numbers. I’m never more grateful for technology than tax time, thanks to software and other online resources for making my finances more manageable. Writing my last estimated tax payment check, I’m optimistic that my trusted tax professional has done his job to ensure that I don’t dread Tax Day. Something to consider: doing your taxes may be distressing, but thinking about your death more so. Estate planning - yes, you should be doing that also. You know what they say about death and taxes...
By Jaime Schrabeck, Ph.D.
We may think that obtaining a beauty license makes us professional, but nothing demonstrates our commitment to being professional like paying our taxes. Granted, none of us aspires to this industry because we want to give the government its due, but it’s one of our greatest responsibilities nonetheless. Regardless of our personal motives or career goals, the government does not value our “artistry,” “technical expertise” and/or “client relations;” beyond basic consumer safety, it’s main concern is financial. Whether we work alone or with others, through good economic times and bad, our tax returns represent the financial health of our salon businesses, and our success as beauty professionals.
Before proceeding, let me clarify that I’m not a tax professional, nor should anything I write be taken as legal advice. You’re responsible for your own tax obligations, and I strongly recommend that you seek guidance from a qualified professional to ensure your compliance with federal, state and local tax laws and regulations. That being said, I hope you find the remainder of this article informative.
At the federal level, the Internal Revenue Service (IRS) relies on our voluntary compliance to accurately report our income under penalty of perjury. The effort this takes varies according to your employment status; an employee completing Form 1040 (U.S. Individual Income Tax Return) using information provided in a Form W-2 (Wage and Tax Statement) has a fairly simple task. As a salon owner with employees, I have a more complex task, which includes a Schedule C (Profit or Loss From Business, Sole Proprietorship). Beauty professionals who have incorporated their businesses, and/or have business partners have different forms to complete. Needless to say, but I’ll say it anyway, the more complicated the circumstances, the more important it is to engage a tax professional.
Timely payment of taxes due should be easy by having the appropriate amount of money withheld from paychecks or making quarterly estimated tax payments throughout the year. That may sound condescending and insensitive, particularly toward those who may struggle to pay their taxes, but it’s not meant to be. Money is one of those subjects that's hard to discuss without the risk of someone feeling uncomfortable or inadequate. Our relationship with money is very personal and private, typically not something we readily share with others. We all could benefit from knowing how to better manage our personal and business finances.
Paying our taxes impacts many aspects of our financial lives. For example, filing successive tax returns determines our ability to obtain credit and qualify for loans, and the amount of future retirement benefits through the collection of Social Security taxes, known as FICA (Federal Insurance Contributions Act) and/or SECA (Self-Employment Contributions Act). The legal consequences for NOT filing tax returns or falsifying information are civil penalties (underpayment tax penalty and interest, which can accrue indefinitely) or criminal prosecution. With the exception of tax attorneys, most people want to avoid any involvement with the IRS.
I've written extensively about being professional; frankly, I’m tired. Not of doing nails for my clients, but of explaining to other manicurists and salon owners why they should do them legally, and to consumers why professionalism matters. Is it really that hard to do the right thing? Given the proliferation of salons and individuals who could generously be described as being “unprofessional,” it's obvious that you don't need to be professional to make money in the beauty business. If many consumers don't seem to care whether or not a salon and its service providers hold valid licenses, do you think they care if taxes have been paid? Probably not, and that’s unfortunate.
When we’ve filed and paid our taxes, there's no certificate to display on the wall, or any other acknowledgment of our commitment to the beauty profession. A tax return is different from the licenses issued by our state governments which allow us to provide services for compensation in the first place. And while I don’t tolerate unprofessional behavior, I don't spend my days obsessing about it either. Setting a good example is enough work. It's really up to you to develop a clientele and associate yourself with colleagues and businesses who support your efforts to be professional, including meeting your tax obligations.
I could probably strategize more tax savings, and invest even more for “retirement,” but I’m very comfortable with my financial position. It’s mid-January, and I’m just days away from submitting my numbers. I’m never more grateful for technology than tax time, thanks to software and other online resources for making my finances more manageable. Writing my last estimated tax payment check, I’m optimistic that my trusted tax professional has done his job to ensure that I don’t dread Tax Day. Something to consider: doing your taxes may be distressing, but thinking about your death more so. Estate planning - yes, you should be doing that also. You know what they say about death and taxes...
By Jaime Schrabeck, Ph.D.
Saturday, February 1, 2014
Ignorance Is Not an Excuse
Article Published in Stylist Magazine, January 2014
Preparing for regulatory changes in the beauty industry would be so much easier if only we were all governed by the same rules and knew what to expect. If that’s our excuse for not being involved and informed, we need to get over it. Within any given state, the same rules apply to all, and even then, many licensees remain ignorant. We shouldn’t waste our time bemoaning the fact that rules vary by state (federal laws excepted) and that national licensing doesn’t exist. No matter how much we complain, the sovereignty of states to govern and protect their respective residents/consumers takes precedence in the absence of federal authority.
As salon owners and beauty professionals, we focus primarily on providing services to our clients, investing in products and continuing education to stay current. We don’t have much time or other resources to devote to governmental affairs seemingly beyond the salon. That’s unfortunate given the power of government to control how we work.
We often hear that it takes "political will" to achieve regulatory change. This common, but rather ambiguous, term has been given this “dynamic” definition in a very interesting research paper (presented to the 2008 Annual Meeting of the National Communication Association):
Apathy does not solve problems; in fact, it can create even more. Not long ago, some legislators in Indiana and Florida (among other states) wanted to deregulate the beauty industry. The potential consequences of such deregulation motivated beauty professionals and consumer advocates to lobby against this, but what would have happened had they failed to act? No matter how obvious or necessary something may seem to beauty professionals, what we consider “best practices” will not be reflected in legislation/regulation without active participation.
In past articles, I’ve been very vocal about being proactive, rather than reactive, to government, particularly at the state level. To learn more about how your state board operates, visit its website, sign up for email notifications and read the rules, meeting agendas/minutes, reports and public notices. Doing this research doesn’t cost anything (except time), but it won’t change anything either unless you use that information.
It may seem hard to believe, but an individual can influence the governing process. If you really want to make a difference, you need to be seen and heard at board meetings, and not just once. With consistent effort, your concern can evolve from a a public comment during a board meeting to a regulatory change, with the necessary steps in between. For example, I want California’s Board of Barbering and Cosmetology to enforce its laws prohibiting mobile services, or change its laws to protect consumers and establishment owners from unlicensed activity. After I made a public comment, the issue was placed on the next meeting’s agenda, prompting the board’s staff to research other state’s laws and make its own recommendations.
When issues concern me, even if they’re not directly related to my work as a manicurist and salon owner, I will freely express my opinion. For example, proposed legislation (in California’s state assembly) to authorize advanced skin care licensing does NOT have my support, as I’ve made clear in this statement to my colleagues:
As an advocate for the beauty industry, I want you to be aware of proposed bill AB 1153, introduced by Assembly Member Susan Talamantes Eggman District 13. If successful, this bill would give California’s Board of Barbering and Cosmetology the authority to license "master estheticians," requiring an additional 600 hours of "practical training and technical instruction" beyond what's currently required (1600 hours for cosmetologists, or 600 hours for estheticians).
More important, if this bill becomes law, it would redefine and expand the scope of practice of “master estheticians” to include body treatments (wraps, scrubs, etc.), currently unregulated services that your business may offer. In effect, this law would require that establishments like yours would have to use licensed "master estheticians" to provide these services.
If you’re concerned about the potential impact of this bill on your business, please contact your legislator to express your thoughts.
By Jaime Schrabeck, Ph.D.
Preparing for regulatory changes in the beauty industry would be so much easier if only we were all governed by the same rules and knew what to expect. If that’s our excuse for not being involved and informed, we need to get over it. Within any given state, the same rules apply to all, and even then, many licensees remain ignorant. We shouldn’t waste our time bemoaning the fact that rules vary by state (federal laws excepted) and that national licensing doesn’t exist. No matter how much we complain, the sovereignty of states to govern and protect their respective residents/consumers takes precedence in the absence of federal authority.
As salon owners and beauty professionals, we focus primarily on providing services to our clients, investing in products and continuing education to stay current. We don’t have much time or other resources to devote to governmental affairs seemingly beyond the salon. That’s unfortunate given the power of government to control how we work.
We often hear that it takes "political will" to achieve regulatory change. This common, but rather ambiguous, term has been given this “dynamic” definition in a very interesting research paper (presented to the 2008 Annual Meeting of the National Communication Association):
"Our ideal-type definition of political will requires that a sufficient set of political actors with a common understanding of a particular problem on the public agenda genuinely intends to support a commonly perceived, potentially effective policy solution. This definition includes four different components, which we deem necessary conditions:If political will doesn’t seem relevant to your work, consider this. Many of the greatest challenges facing our industry are regulatory in nature: unlicensed activity, employment law, health and safety, education, etc. Can we expect legislators and bureaucrats to address problems without some guidance? How are they to know that a problem even exists? What evidence will they gather and which experts will they consult? What are the consequences, intentional or not, of the proposed solutions? When we allow changes in our industry to happen without our influence or support, it’s not likely that we’ll welcome them. Conversely, when we tolerate inequities, incompetence and obsolescence in our governance, we’ve failed ourselves as professionals.
- A sufficient set of political actors
- With a common understanding of a particular problem on the public agenda
- Genuinely intends to support
- A commonly perceived, potentially effective policy solution."
(Post, L., Raile, A. & Raile, E., "Defining Political Will," p. 5).
Apathy does not solve problems; in fact, it can create even more. Not long ago, some legislators in Indiana and Florida (among other states) wanted to deregulate the beauty industry. The potential consequences of such deregulation motivated beauty professionals and consumer advocates to lobby against this, but what would have happened had they failed to act? No matter how obvious or necessary something may seem to beauty professionals, what we consider “best practices” will not be reflected in legislation/regulation without active participation.
In past articles, I’ve been very vocal about being proactive, rather than reactive, to government, particularly at the state level. To learn more about how your state board operates, visit its website, sign up for email notifications and read the rules, meeting agendas/minutes, reports and public notices. Doing this research doesn’t cost anything (except time), but it won’t change anything either unless you use that information.
It may seem hard to believe, but an individual can influence the governing process. If you really want to make a difference, you need to be seen and heard at board meetings, and not just once. With consistent effort, your concern can evolve from a a public comment during a board meeting to a regulatory change, with the necessary steps in between. For example, I want California’s Board of Barbering and Cosmetology to enforce its laws prohibiting mobile services, or change its laws to protect consumers and establishment owners from unlicensed activity. After I made a public comment, the issue was placed on the next meeting’s agenda, prompting the board’s staff to research other state’s laws and make its own recommendations.
When issues concern me, even if they’re not directly related to my work as a manicurist and salon owner, I will freely express my opinion. For example, proposed legislation (in California’s state assembly) to authorize advanced skin care licensing does NOT have my support, as I’ve made clear in this statement to my colleagues:
As an advocate for the beauty industry, I want you to be aware of proposed bill AB 1153, introduced by Assembly Member Susan Talamantes Eggman District 13. If successful, this bill would give California’s Board of Barbering and Cosmetology the authority to license "master estheticians," requiring an additional 600 hours of "practical training and technical instruction" beyond what's currently required (1600 hours for cosmetologists, or 600 hours for estheticians).
More important, if this bill becomes law, it would redefine and expand the scope of practice of “master estheticians” to include body treatments (wraps, scrubs, etc.), currently unregulated services that your business may offer. In effect, this law would require that establishments like yours would have to use licensed "master estheticians" to provide these services.
If you’re concerned about the potential impact of this bill on your business, please contact your legislator to express your thoughts.
By Jaime Schrabeck, Ph.D.
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