Chair/Room Renter - Salon Permit is Required
Updated September 14, 2021
If you rent a space or chair within a salon or spa to provide cosmetology services, you are considered a self-employed business owner and are therefore required to obtain a salon permit from the Association.
This is also required for all Hairdressers who are renting a chair (when the salon owner is paying EI on behalf of that renter and issues that renter a T4 for EI purposes.)
For further information please contact the Association directly.
Click here for Chair/Room Rental Registration Package.
Understanding Chair and/or Room Rental Permits
HAIRSTYLISTS - PLEASE NOTE:
Chair renters - the salon owner must pay EI for you, regardless of the fact that you consider yourself self-employed.
There are currently independent chair or room renters and salon or spa owners who are not conducting business under the guidelines established by CRA as described above. If you are not following the CRA guidelines described above, you may be subject to a review and audit by CRA, resulting in possible penalties and fines. The Association is providing this information to help cosmetologists better understand business tax requirements.
According to CANADA REVENUE AGENCY, (see also Guide T4001, Employers’ Guide - Payroll Deductions and Remittances pg. 44) a chair/room renter is self-employed if any of the following situations (not limited to) apply:
You may also have:
1. You have your own BN (business number) with Canada Revenue Agency.
2. You have an HST number with Canada Revenue Agency.
Please visit Canada Revenue Agency's website at https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/special-situations/barbers-hairdressers.html for more information and updates, or contact CRA directly at 800-959-5525.