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Thread: weird paper work i had to fill out

  1. #1
    God/dess simone87's Avatar
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    Default weird paper work i had to fill out

    thanks!
    Last edited by simone87; 01-18-2014 at 03:19 PM.

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    Featured Member Tourdefranzia's Avatar
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    Default Re: weird paper work i had to fill out

    The form is called an I-9 and is required if the club issues you money in any way (like from customers getting cash advances on their credit cards with funny money). If you are an IC and do not receive any payment at all from the club (if the customers use the ATM to get cash to pay dancers), then it is unnecessary for them to fill out this form. You could present a business license instead of filling out the I-9, and keep your SSN information private.

    Business licenses can cost money, depending on where you are. Some states do not require sole proprietorship businesses to have an official business license if you are doing business under your name. Others may charge a couple hundred for a sole proprietor license. I have an LLC (paid a lawyer $3k for it. It is a waste of money for a stripper.), and list my business name as [insert stage name here] Consulting. I list my profession on my taxes as "entertainer."

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    God/dess Selina M's Avatar
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    Default Re: weird paper work i had to fill out

    I've had to put my SS number on all kinds of job applications, including the I-9. It is for them to have on file in case they get busted for hiring illegal immigrants.

    I wouldn't worry about it. It has nothing to do with taxes. Unless they had you fill out a W-2, or if you have to report your earnings each night (opening the door for them to send you a 1099), there's no reason for them to send you anything tax-related. Most clubs I have been at require you to sign a form saying you are an independent contractor and are responsible for claiming your own income and that they do not send you anything.
    "People jack off with the left hand and point with the right."

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    Banned Melonie's Avatar
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    Default Re: weird paper work i had to fill out

    a lot of them think that they are going to try to send out taxes in behind our backs without us knowing now that they have SS numbers, but wouldn't they have to tell us first , legally? they couldn't lie to us about that crap..i just need to know, not because i don't want to pay taxes..i file every year, but i need to know that everything matches up
    umm ... as has been posted in other threads ... part of the 'Obama Bull$#it' is a new legal requirement that ALL US businesses must issue 1099 reports to the IRS showing any amount of money paid ( by the business / club ) to another business ( i.e. an unincorporated or incorporated independent contractor dancer ). This ACA legal requirement was supposed to go into effect in 2013, but was granted a 1 year postponement ( which has NOT been continued ).

    As such, with this new ObamaCare legal requirement in place, the clubowners now face a dimemma in regard to customer credit card money ...

    A. they can report the portion of customer credit card money paid out to dancers via 1099's, and only pay income tax on the 'difference' between the total customer credit card money taken in and the total amount of customer credit card money paid out to dancers, or

    B. without issuing a 1099 report, the club will have to claim the total amount of customer credit card money as CLUB income, and pay income taxes on the entire amount, without being able to 'deduct' the portion paid out to dancers.

    In terms of after-tax dollars, this is a big deal. In an environment where customer credit card charges are split 50/50 between the club and the dancer, for every $1000 in customer credit card charges option A. means that the club has to report $500 (net) in taxable income and gets to keep say $400 of the customer's $500 after taxes. But option B. means that the club has to report $1000 in taxable income and only gets to keep $300 of the customer's $500 after taxes.

    Thus dancers must now count on the fact that club owners are keeping track of ALL of the money being paid out directly by the club to the dancers, and that 1099 reports to the IRS showing the total dollar amounts of such payments to every dancer during 2014 will be issued to the IRS in Jan/Feb of 2015. The info gathered by the club owners via the I-9 form serves as both proof of 'legal' employment, as well as providing the club all of the necessary info to generate 1099's in the spring of 2015.

    Why would a clubowner 'lie' about this ? Well, indeed the Patriot Act and DHS regulations now require 'employers' to verify that their 'employees' are legally allowed to work in the USA. But independent contractor dancers aren't 'employees', but they ARE 'workers'. Perhaps a direct statement that 2014 payments from the club to dancers will be reported to the IRS in the spring of 2015 would prompt certain dancers to seek work at different clubs ? Perhaps the clubowners don't really understand the legal and tax implications themselves, and are just doing what their attorneys and accountants are telling them to do ? Personally speaking, I'd guess the latter !

    As pointed out above, if dancers are making quarterly estimated tax payments, and are filing annual tax returns, then having a 1099 show up in their mailbox in February of 2015 isn't a 'big deal'. However, if dancers are attempting to 'fly below the radar', not making estimated tax payments, not filing annual tax returns, under-reporting their actual incomes, etc., the unexpected arrival of a 1099 can cause 'serious problems' !
    Last edited by Melonie; 01-18-2014 at 01:29 PM.

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    God/dess simone87's Avatar
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    Default Re: weird paper work i had to fill out

    oh, i rarely get funny money, maybe twice a year so that part isn't a big deal. i try to avoid it whenever possible because we get screwed on it. so i don't get "paid out" hardly anything by them, and i haven't gotten any 1099 or heard anything about it..idk what they are doing in regards to that.
    yeah my boyfriend told me it was an I-9 but i was just checking!

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    Featured Member Tourdefranzia's Avatar
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    Default Re: weird paper work i had to fill out

    OMG! Thanks for the info Melonie! The club I currently work at has funny money, but management has been encouraging the dancers to use card readers on their smartphones if possible. The customers are a little gun shy about handing strippers their credit cards, but the 25% surcharge the customers pay for funny money is enough for them to feel a little bit more comfortable about the transaction.

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    Banned Melonie's Avatar
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    Default Re: weird paper work i had to fill out

    management has been encouraging the dancers to use card readers on their smartphones if possible.
    ^^^ NONE of the 'mainstream' smart phone credit card processing services ( Intuit GoPay, Square, PayPal Here etc. ) will knowingly process credit card charges for 'adult' businesses. Like conventional PayPal, if it is discovered after the fact that their services are being used by an 'adult' business, they can terminate the account and seize any account balance.

    'Legally' processing adult business related customer credit card charges via smart phone ( or otherwise ) without such risk of cancellation and seizure requires the establishment of an 'adult' business credit card merchant account. Because banks and credit card companies recognize a much higher loss risk for 'adult' businesses in terms of disputed charges, chargebacks, etc., the payment processing percentages involved are usually fairly high. And 'adult' businesses that do not have 'brick and mortar' assets ( i.e. a strip club, an adult toy storefront etc. ) are considered to present an even higher loss risk ( since they could simply relocate or cease business operations leaving 3rd party chargebacks unpaid ).

    There are a few specialty mobile ( and other ) credit card processors that do cater to such adult businesses, though. Since dancers offer 'personal services' ( versus products ), since dancers have no 'brick and mortar' business assets, etc., the 3rd party processor risk factors for smart phone ( and other ) credit card processing will probably place dancers in the same risk category as ( independent ) escorts.

    See


    The customers are a little gun shy about handing strippers their credit cards, but the 25% surcharge the customers pay for funny money is enough for them to feel a little bit more comfortable about the transaction.
    The 25% 'surcharge' that clubs impose on customer credit card charges isn't all 'greed' on the part of the clubowner. Instead, some of it is meant to recoup credit card processing fees charged to the club by the club's 3rd party credit card processor, as well as to reimburse customer credit card chargebacks ( versus the club demanding that the dancer pay back money she already received from the club against a customer credit card charge for VIP / funny money that was actually charged back to the club at the end of the month ).

    Depending on the individual dancer's personal assets and personal credit rating, it's not unreasonable to expect that 3rd party 'escort' category mobile credit card charge processing on behalf of that dancer will carry a 15-20% processing 'fee'. Another option would involve lower percentages, but also stipulations which would ( for example ), delay time between customer charge processing and actual payout to dancer by a month or more ( thus eliminating need for the 3rd party processor to attempt to 'claw back' money from the dancer to reimburse a customer chargeback on money which the 3rd party processor already paid out to the dancer ), withholding an additional 10% of every customer credit card transaction until a large 'cushion' of escrowed funds a.k.a. 'security deposit' has built up ( thus providing direct funding for the 3rd party processor to reimburse a customer chargeback ), requiring the dancer to post say $5000 in up front escrow funds a.k.a. 'security deposit' ( also providing direct funding for the 3rd party processor to reimburse a customer chargeback ), etc.

    The bottom line here is that, outside of the 'illegal' use of mainstream smart phone credit card processors ( which typically charge 5% or less in processing fees to 'normal' businesses ) for adult business customer credit card charge processing, the 'premium' that dancers must charge customers using credit cards to cover the additional costs incurred aren't going to be much different than the 'premium' the club already charges. Unless, of course, the dancer is comfortable with the idea of actually getting paid $16 on a $20 private dance charged to a customer's credit card by her 3rd party adult credit card processor ( after she pays credit card processing fees etc. out of her own pocket ).

    Also, as should be obvious, the 3rd party credit card processor is going to generate 1099's for all customer credit card moneys paid out to the dancer.
    Last edited by Melonie; 01-20-2014 at 09:59 AM.

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