Tax, identification and records?
Hi!
I wonder if anyone could tell me if they require any specific identification at Spearmint Rhino? Also, do you have to pay tax if you work for them, do they keep records? And is there any way it could show up in some record that I've been working as a stripper?
::)
Re: Tax, identification and records?
Obviously any individual SR manager could choose to break corporate policy, but if SR managers (and any other corporate club managers for that matter) follow the law in terms of IRS plus Patriot Act ...
A. they will require that you provide your real name, real address, real SS# and real age as part of a 'job application' which is kept on file at the club. If you don't have a SS#, they will ask for a TI# and a green card instead.
B. they will at the very least report any customer credit card charges or 'funny money' that the club pays to you in cash as 1099-miscellaneous income (with a copy to the IRS)
C. while the club may not directly report your tip earnings, VIP earnings, private dance earnings etc. to the IRS via a 1099 form, tax law requires that you report it as income yourself. To be more specific, whether the club issues a 1099 or not, by law dancers are required to send in estimated tax payments every three months plus file an end of year tax return where their tip, VIP, private dance income is reported on IRS Schedule C Profit or Loss From A Business.
While the club may not have automatically reported your tip and VIP and private dance earnings to the IRS, the club will keep records in regard to which dancers worked which shifts on which days, which dancers did how many VIP's and/or private dances etc. Thus if the IRS should ever have reason to investigate either you or the club, the IRS can use club shift schedules, VIP & private dance ledgers etc. to prove that you worked X number of nights and probably earned Y dollars on the average for every night the schedule shows that you worked.
Obviously, if and when this info comes to the attention of the IRS for whatever reason, and IRS computers fail to find any past tax returns having been filed by the dancer(s) shown in the club 'job application' and shift schedule records, a full audit is sure to follow. If you search for threads about SCORES, you'll find that the IRS wound up investigating the club due to charges of embezzlement being levied against the club's owners. In the process, the IRS will undoubtedly go through all of SCORES 'job application's and shift schedules, and will undoubtedly be auditing hundreds of dancers who club records show to have worked at SCORES over the past few years, but who failed to file income tax returns or claimed an unrealistically low amount of income.
SR or other corporate clubs must treat their 'personnel' information as confidential, thus the fact that you worked for a corporate club will not become common knowledge. However, some SR's and other corporate clubs are located in jurisdictions that require a business license, a dancer's license etc. which are issued by local gov't/police. As such, the fact that you have obtained a business license, a dancer's license etc. becomes a matter of official public record - which is basically then available to anyone who asks to see it under the Freedom of Information act.
~
Re: Tax, identification and records?
I live in Atlanta which I have a dancer license. I dance on a part-time basis and have another source of income which is my main source of income, dancing is basically to help me get out of debt and to save some money and for some fun spending money. I already pay taxes for my regular job and will pay extra for the dancing but I'm wondering if on my income taxes if I have to put just additional non 1099, non W-2 income or if I have to actually claim it as money from being an exotic dancer? I just started a few weeks ago so I'm not sure what I'd put. In the past what I've done for my regular job, there were many offices that I worked in that would give me a straight check w/o taking taxes out and when it came time to do my taxes I would just put additional non W-2 income and then put the amount like $13,250 or something like that. Do you think that would be ok to do it like that or would I have to actually categorize it as a dancer? My parents accountant does my taxes, I trust him and don't want to go to anyone else and don't really want him or my parents to know about my dancing. Do you think it would be ok if I put it down just as additional income? I mean, does Uncle Sam really care just as long as they're getting their money? Thanks for any info!
Re: Tax, identification and records?
Thank you for your reply Melony, although we might have different rules here in Europe where I'm about to work. I'm going to work at the Spearmint Rhino in Bournemouth, England but I live in Sweden and will therefore pay my taxes in Sweden. I just want to know ifa anyone here knows if SR's in England reports the dancers' incomes?
Re: Tax, identification and records?
Dear Leogirl -
Your dancing earnings are self-employment income. The main point is to claim your income and the appropriate self-employment (social security) taxes on the net income. You are to report your gross earnings along with your claimed business deductions.
Your family accountant can continue to prepare your taxes and I am sure that s/he will determine the correct amount of tax without violating your privacy.
Regards,
Dan
Re: Tax, identification and records?
I believe that they do report income...but if they're anything like US clubs, most big clubs have a "code name", so to speak, that the dancers are "paid" under. For instance, the club may be the SR, but the paychecks or taxes may be paid under SR Food and Drinks.
Your best bet is to call the club you are interested in working in and asking them directly. They can give you much more current and correct information than we can, at this point.
Re: Tax, identification and records?
Quote:
Originally Posted by leogirl876
I live in Atlanta which I have a dancer license. I dance on a part-time basis and have another source of income which is my main source of income, dancing is basically to help me get out of debt and to save some money and for some fun spending money. I already pay taxes for my regular job and will pay extra for the dancing but I'm wondering if on my income taxes if I have to put just additional non 1099, non W-2 income or if I have to actually claim it as money from being an exotic dancer? I just started a few weeks ago so I'm not sure what I'd put. In the past what I've done for my regular job, there were many offices that I worked in that would give me a straight check w/o taking taxes out and when it came time to do my taxes I would just put additional non W-2 income and then put the amount like $13,250 or something like that. Do you think that would be ok to do it like that or would I have to actually categorize it as a dancer? My parents accountant does my taxes, I trust him and don't want to go to anyone else and don't really want him or my parents to know about my dancing. Do you think it would be ok if I put it down just as additional income? I mean, does Uncle Sam really care just as long as they're getting their money? Thanks for any info!
I know some people who have their "regular" job take out more taxes to cover the dancing taxes. If you get a 1099 from your club, you are going to need to include it in your taxes. Since you've only been dancing a few weeks, you should really make an account to save "tax money" and put away enough money to cover the end of year taxes. In order for your accountant to properly do your taxes, you are going to need to give him a lot of information...you don't have to claim it as dancing. You can claim it as a Contractor...whatever. However, if you spend a lot of money on outfits, etc for work, you can lower your tax liability by writing off the stuff that you purchase solely for work. If you are not confident that this tax preparer isn't going to tell your parents, then you may want to go somewhere else. Preparing taxes takes a little bit more than, "Oh, I made an additional $13,000 this year."
Re: Tax, identification and records?
That's how I've been doing it in the past, prior to dancing. I have 3 sources of income. First off, I'm a dental hygienist and I've been working as an independent contractor like if an office's hygienist gets sick, goes on vacation, or a maternity leave, etc. I go in and work anywhere from 1 day to 3-4 months depending on the needs. Some offices will take out taxes, some will 1099 me and then some won't at all. The ones that don't 1099 me, I've always added that amount up for the year and gave to the accountant saying additional contract income that's not from W-2 and not from 1099 and gave an amount. Then I also own a small business where I find jobs for other dental hygienists and assistants. I send them out, the dentist pays them and I get a finders fee for that. I don't get any type of 1099 for the finders fees, so that goes into the "additional" amount that I add up. So, I'm wondering if I could maybe just do that with my dancing money as well. My club doesn't ask us how much we made that night, I've never filled out any type of tax form and from what they've told me, I'm an independent contractor and responsible for my own taxes. Considering my other 2 forms of income, do you think I could just add my dancing money to the amount? Or do you really think I'd have to put it in a separate category? I'm hoping I can just add it in. I do also pay quarterly for my other forms of income and now that I'm dancing, I'm just going to pay more for the quarterly income. I would think that as long as Uncle Sam is getting his right amount of taxes it should matter that I say x amount is from the dental services and y amount is from the dancing. What do you all think? Has anyone had any similar situation? If so, please tell me what you did. Thank you! :)
Re: Tax, identification and records?
Well, if you are not getting tax forms or anything from the clubs, then you could take the cash and merge it into another business. However, just because you didn't fill out a form for a 1099 doesn't mean that you won't get one at the end of the year.
Re: Tax, identification and records?
How would the club know how much you made? They've never asked me how much I've made so how could they send me a 1099 if they don't ask me how much I've made? I could maybe see if when you turn in the funny money but the cash, I don't see how they could send a 1099 w/o knowing how much you made. When I go in tonight I'm going to ask them if they send out 1099's.
Re: Tax, identification and records?
^ That's the best way to do it.
I've known girls who work at clubs who get 1099's that ESTIMATED how much they made. My old club only reported on the 1099's what you made in funny money.
If you are unsure, you should always ask the club.
Re: Tax, identification and records?
First I'm only talking US rules. Seems to me that if you file a Schedule C (self-employment), where they ask for the nature of your business, you could enter something like "Music" or "Promotion" if you claim performer deductions (costumes etc), or "Odd Jobs" if you do not to reveal anything and the income is not monumental. If you get audited somehow, you probably will have to reveal more info. Note that performer income deductions are limited to a maximum income amount; better read the instructions; they are pretty clearly written in this area.
Re: Tax, identification and records?
BTW...the way they "estimate" income is based upon how much you are tipping out. ;)