Salons and Spas

Payroll Services for Salons and Spas

Running a salon, spa, or barbershop means managing more than one way to pay your team. With SurePayroll® By Paychex, you can run payroll for hourly wages, commissions on services and retail, and tips.

Pay W-2 employees and independent contractors from one account. Manage commissions, bonuses, and reported tips alongside regular wages. On Full-Service, SurePayroll calculates, deposits, and files your federal, state, and local payroll taxes on the filings your plan covers.

Run payroll from your desk, or from your phone between appointments.

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A salon owner stands in her salon using a tablet, with empty styling stations behind her.

Run payroll for hourly pay, tips, and commission

Hourly pay, tips, and overtime

Process regular hours, overtime, and reported tips in the same payroll run, with tips reflected in payroll records and tax forms as applicable.

Commission and bonus pay

Include commissions and bonuses in your payroll runs, with SurePayroll calculating the payroll taxes and deductions.

Year-end W-2s and 1099s

Forms for your employees and independent contractors come from the same payroll account you run all year, so year-end starts with your records already together.

Salons and Spas

Every stylist's paycheck can look different

A stylist can earn an hourly wage, commission on services, a different rate on retail, and tips, all in the same week. Barbershops and spas run on the same mix. Your booking software may track those earnings. Turning them into paychecks, tax deposits, and year-end forms is payroll work.

Commission on services and retail

Many salons pay one commission rate on services and another on product sales. You set the split and calculate each stylist's total. That amount then needs to land on the right paycheck, with taxes withheld.

Minimum wage still applies

Commission doesn't replace the minimum wage. For nonexempt employees, total pay for the workweek generally has to meet the applicable minimum wage for the hours worked, slow weeks included. State and local minimums may be higher than the federal rate.

Overtime with commission

For nonexempt employees, commission is generally included in the regular rate used to figure overtime, so it may increase the overtime you owe. When it applies, include commission as you figure the overtime rate, and confirm that overtime is properly calculated. Some commissioned employees of retail or service establishments may qualify for an overtime exemption if specific requirements are met.

Tips, cash and card

Tips your employees report to you and card tips you pay out both belong in payroll. Reported tips are generally included in wages and on year-end W-2s.

Booth rental and worker status

Booth rental is a business arrangement, not a job title. Whether a stylist is an employee or an independent contractor depends on the actual working relationship under IRS, Department of Labor, and state rules, and payroll obligations follow from that status. Many salons have both: booth rent coming in and employees on payroll.

Tracking earnings isn’t running payroll

Many booking and point-of-sale tools track appointments, commissions, and tips. If yours stops there, withholding, tax deposits, quarterly filings, and year-end forms need to happen when you process payroll.

Our Solution

Bring your salon payroll together in one place

Your booking software may track appointments, commissions, and tips. In SurePayroll, you turn those earnings into payroll. On Full-Service, SurePayroll files your payroll taxes on the filings your plan covers and generates year-end forms for your team. Questions? We're here.

Here’s what you get with SurePayroll

Payroll should be stress-free. So we make sure it is.

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OUR CLIENTS SAY

"I really loved the SurePayroll mobile app when I was out of town. That app was my best friend."

Stephanie Anderson, Owner, The Living Room Hair Lounge

SurePayroll Customer

“This has changed my life and made my job so much easier. My staff absolutely loves the new phase that my company has taken. SurePayroll was easy to set up and they always made sure I was happy and got everything I wanted. This was the best move I ever could have made. Thank you, SurePayroll.”

Joanna

SurePayroll Customer

“SurePayroll has been key to our growth. Our success really comes down to the Reseller Program.”

Matt

SurePayroll Customer

25+

YEARS

Trusted by small business owners across the U.S.

Payroll for as little as $1 per day

Billed monthly. Cancel anytime.

Create your account in 30 seconds

You can get started right now! Just answer a few quick questions to get the ball rolling.

Set up your business (we can help!)

Add your company, employee, bank, and tax information. (Need help? Onboarding support is always free.)

Free payroll every other month in your first year

During your first 12 months with SurePayroll, every alternating month will be free. And since there’s no commitment, you can cancel anytime.

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Frequently asked questions

How do I pay commission to salon and spa employees in SurePayroll?

Pay commission in the same payroll as regular wages, or on its own when you need to. SurePayroll calculates the payroll taxes and deductions on commission and bonus pay, and both appear on employee paystubs and year-end W-2s.

Do commission-paid stylists still have to earn minimum wage?

Generally, yes, for nonexempt employees. Commission-based pay still must satisfy applicable minimum wage requirements. State and local rules may vary.

This is general information, not legal advice. For questions about your specific situation, consult an attorney.

How does overtime work for employees paid hourly plus commission?

For nonexempt employees, commissions are generally included in the regular rate used to calculate overtime, which can affect the overtime amount owed. Some commissioned employees of retail or service establishments may qualify for an overtime exemption if specific requirements are met. State rules may vary. The U.S. Department of Labor's Fact Sheet #20 explains the federal requirements.

This is general information, not legal advice. For questions about your specific situation, consult an attorney.

If I rent booths to other stylists, do they go on my payroll?

It depends on each stylist's worker status, not on the booth rental arrangement alone. Whether someone is an employee or an independent contractor depends on the actual working relationship under IRS, DOL, and state rules. Independent contractors may need a Form 1099-NEC. Employees you hire, such as an assistant or front desk staff, are paid through payroll.

This is general information, not legal advice. For questions about your specific situation, consult an attorney.

Can I use my salon booking software for payroll?

Booking software may track commissions, tips, and hours. Payroll is where you pay employees and meet the payroll tax and reporting requirements that come with it. If your booking software stops at tracking earnings, you can use those totals to run payroll in SurePayroll.

Do federal tip tax rules apply to salons and spas?

Recent federal tax changes may affect eligible beauty-service businesses and workers who receive qualified tips, including changes to the employer Federal Insurance Contributions Act (FICA) tip credit and a federal income tax deduction for qualified tips. Eligibility and tax treatment depend on specific requirements.

This is tax information, not tax advice. Consult your tax professional to ensure compliance for your specific situation.

I rent a booth at a salon. Do I need to run payroll?

Generally not for yourself, if you work as a sole proprietor. Booth renters who run their own business typically pay their own taxes as self-employed business owners. Payroll generally comes in when you hire your first employee, or if your business has elected S corporation tax status and you work in the business, which requires paying yourself a reasonable salary through payroll.

This is tax information, not tax advice. Consult your tax professional to ensure compliance for your specific situation.

Related Resources

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Payroll Services for Salons and Spas

Run payroll for hourly pay, tips, and commission

Every stylist's paycheck can look different

Here’s what you get with SurePayroll

Unlimited, fast payroll runs

Free direct deposit & automatic payroll scheduling

Reports and paystubs online 24/7

Payroll taxes filed and deposited—automatically

Payroll for as little as $1 per day

Create your account in 30 seconds

Set up your business (we can help!)

Free payroll every other month in your first year

Frequently asked questions

Related Resources

Get payroll that’s affordable, easy, and hassle-free

Payroll Services for Salons and Spas

Run payroll for hourly pay, tips, and commission

Every stylist's paycheck can look different

Here’s what you get with SurePayroll

Unlimited, fast payroll runs

Free direct deposit & automatic payroll scheduling

Reports and paystubs online 24/7

Payroll taxes filed and deposited—automatically

Payroll for as little as $1 per day

Start now for limited-time offer.*

Create your account in 30 seconds

Set up your business (we can help!)

Free payroll every other month in your first year

Frequently asked questions

Related Resources

Get payroll that’s affordable, easy, and hassle-free