Bookkeeping, payroll tax and sales tax for salons & barbershops
A salon mixes cash, card tips, product sales and a team made up of both employees and booth renters. RazaPro reconciles deposits and card payouts, keeps each worker’s pay in the right category, calculates payroll tax and prepares sales tax on product sales.
What salons & barbershops have to get right
Cash and tips
Cash services, card tips and tips paid out to staff all pass through the books. Tips are wages for tax purposes, and the records must show what was paid.
Booth renters or employees
A chair rented to a stylist and an employee on payroll are treated differently for tax. The IRS decides based on the working relationship, so the call belongs to the owner and their CPA.
Product sales are taxable
Shampoo, tools and other retail products are usually taxable sales. Services often are not, so one till has two different treatments.
Small payments, many processors
Card readers, booking apps and online payments each pay out separately after fees.
What RazaPro does for salons & barbershops
- Cash deposits, card payouts and booking-app payouts matched to the bank
- Tips and commissions recorded in payroll correctly
- Booth rent income tracked separately from service income
- Bank and credit card transactions reconciled every month
- Payroll and payroll tax calculated monthly or quarterly
- Sales tax calculated on product sales and handed over ready to file
What it costs
Bookkeeping plus payroll tax ($130–$140 a month).
Bookkeeping is priced by transactions: $75 a month up to 150 transactions, $100 up to 300 and $120 up to 500. Catch-up work, extra states and larger payrolls are quoted before any work starts.See all plans and the estimator.
Software: QuickBooks Desktop, including a shared file on a virtual machine, and QuickBooks Online.
Sales tax
Product sales are usually taxable while services are often not, and the rules vary by state. RazaPro separates the two so tax is calculated only on what the client’s state taxes.
Payroll and payroll tax
Small teams of up to five employees are the standard scope. Payroll with tips and commissions is calculated each period, with payroll tax deposits and returns prepared.
Not included in the standard scope
- Booth renter versus employee decisions (owner and CPA)
- Product inventory counts (quoted separately)
- Licence renewals and board filings
- Multi-shop consolidation
RazaPro does not prepare or file income tax returns or give tax advice. Tax decisions and signatures stay with the business and its CPA.
Work our team has done in this industry
Our team has handled the monthly bookkeeping, payroll and sales tax routine for salons & barbershops among the small-business clients it supported for a US accounting firm.Client names are not published, and results vary by client.Read the anonymous case studies.
Frequently asked questions
How much does bookkeeping cost for a salon or barbershop?
Bookkeeping is $75 to $120 a month depending on transactions. With payroll tax it is $130 to $140, and with sales tax on products it is $150 to $170.
Can you handle booth renters?
Booth rent is tracked as income and renter payments are kept separate from payroll. Whether a worker is a renter or an employee is a decision for the owner and their CPA.
Do you handle tips in payroll?
Yes. Tips and commissions are included when payroll and payroll tax are calculated.
Do salon services need sales tax?
It depends on the state. Product sales are usually taxable and services often are not. RazaPro calculates sales tax on what the state taxes.
Accounting firm with salons & barbershops as clients?
RazaPro does this work under your firm’s name at wholesale prices from $40 to $70 per client a month, with a free 30-day pilot on up to 3 clients.See the firm program.
Serving businesses across the US
RazaPro supports businesses in every state. State guides with local tax detail:Texas, Georgia, Colorado, New York, New Jersey, Florida, California, Illinois. Other industries:Gyms & Fitness, Retail Stores, Restaurants & Bakeries.All industries.
Talk through your salons & barbershops books
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