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New rules for contractors have unexpected consequences for strip clubs

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Re: New rules for contractors have unexpected consequences for strip clubs

#21

Post by AmericanChopper »

kelnos wrote: post #10

Essentially what's happening is that now the club owners have to pay a bunch of taxes they managed to avoid paying before. The dancers themselves were likely not paying as much in taxes as they were supposed to, but now, with paycheck withholding, they're probably paying more in taxes than they used to. The clubs, in order to compensate for all the "new" taxes, are only paying minimum wage, and are taking larger cuts…

> Really what it boils down to is that these are not sustainable businesses at the prices they currently charge customers

That’s not the most obvious take away imo. I’d say it’s obvious that the strippers were doing a fair bit of tax evasion, but having known a few strippers, a successful stripper would still be making good money even with meeting all their tax obligations. The issue the clubs now face is that they can’t properly cover the risks of paying salaries to employees who’s revenue is entirely tip based. It’s really just a completely predictable outcome of a government trying to protect people from their own decisions with regulation. As a contractor myself I dread the day the government finally gets around to saving me from the working arrangement that I have benefitted so greatly from adopting.

Re: New rules for contractors have unexpected consequences for strip clubs

#22

Post by xhgdvjky »

RcouF1uZ4gsC wrote: post #18

> Some dancers also feared being classified as employees would mean not being able to pick and choose which customers to serve. > “I think they should control their own sexuality, they should control their own bodies,” he said. “The difference there being, of course, if you’re an employee, you don’t have a choice who you perform for, as an independent contractor you get to choose how you perform, whom you perform for…

I am not an expert but I think they officially offer very basic services and anything extra is at the dancer's discretion. but since nothing extra is officially offered, it's hard to make claims about it

Re: New rules for contractors have unexpected consequences for strip clubs

#23

Post by newshorts »

Wouldn’t economics dictate the lower supply of dancers be paid more money?

Sounds like the clubs will need to raise those wages a bit.

Also, the dancer can now unionize which means they can bargain for fairer pay.

This whole piece comes off as a victim plea from the clubs’ owners who’ve been skimming dancers. Time to pony up fellas.

Re: New rules for contractors have unexpected consequences for strip clubs

#24

Post by adrr »

rossdavidh wrote: post #19
dghughes wrote: post #11

Where did all the money go? If the dancers made hundreds of dollars as independent contractors wouldn't it have been tips from customers? Wouldn't the dancers still get the same amount but now also $15/hour plus benefits?

See the article; the cut which the clubs take, has gone up.

And also they had to pay taxes on their income now.

Re: New rules for contractors have unexpected consequences for strip clubs

#25

Post by jandrese »

rolltiide wrote: post #16
CydeWeys wrote: post #3

"This whole business will be completely ruined. The whole point about being a stripper is you go in, get fast cash, no one knows how you’re getting it, it’s not documented and it’s not taken from you." Sorry not sorry that you have to actually start paying taxes on your income like the rest of us. Some of these quotes are really helping to make the case for the law.

But that doesn’t explain why their comp is fixed at the minimum wage of $15/hr This article is a year old.

Because strip club owners are mostly assholes? They're going to take as much as they think they can get away with, which is probably a lot.

Re: New rules for contractors have unexpected consequences for strip clubs

#26

Post by [deleted] »

kelnos wrote: post #10

Essentially what's happening is that now the club owners have to pay a bunch of taxes they managed to avoid paying before. The dancers themselves were likely not paying as much in taxes as they were supposed to, but now, with paycheck withholding, they're probably paying more in taxes than they used to. The clubs, in order to compensate for all the "new" taxes, are only paying minimum wage, and are taking larger cuts…

[deleted]

Re: New rules for contractors have unexpected consequences for strip clubs

#27

Post by clay_the_ripper »

kelnos wrote: post #10

Essentially what's happening is that now the club owners have to pay a bunch of taxes they managed to avoid paying before. The dancers themselves were likely not paying as much in taxes as they were supposed to, but now, with paycheck withholding, they're probably paying more in taxes than they used to. The clubs, in order to compensate for all the "new" taxes, are only paying minimum wage, and are taking larger cuts…

It sounds like the new rules will force a new market equilibrium. When you didn’t have to pay taxes and the money was fast, cheap and untraceable there was probably excess supply of labor. Now that you do have to pay taxes, supply may go down increasing prices to attract a smaller pool of labor. But what I suspect will happen is that supply will remain mostly constant, prices will stay about the same, and the dancers just won’t make as much money. Many of them may not have lots of other career options, so they will be stuck at a new lower rate of pay. While that is probably a bummer for them, I would also be a lot richer if I didn’t have to pay taxes either.

Re: New rules for contractors have unexpected consequences for strip clubs

#28

Post by ShteiLoups »

jandrese wrote: post #25
rolltiide wrote: post #16

Earlier quoted context omitted.

But that doesn’t explain why their comp is fixed at the minimum wage of $15/hr This article is a year old.

Because strip club owners are mostly assholes? They're going to take as much as they think they can get away with, which is probably a lot.

And if they can't get away with it, I suppose they'll have to raise wages to attract entertainers.

Oh look, a free market!

Re: New rules for contractors have unexpected consequences for strip clubs

#29

Post by GhettoMaestro »

RcouF1uZ4gsC wrote: post #18

> Some dancers also feared being classified as employees would mean not being able to pick and choose which customers to serve. > “I think they should control their own sexuality, they should control their own bodies,” he said. “The difference there being, of course, if you’re an employee, you don’t have a choice who you perform for, as an independent contractor you get to choose how you perform, whom you perform for…

I've seen strippers refuse to give black guys lap dances. The black guys got pissed and left.

Re: New rules for contractors have unexpected consequences for strip clubs

#30

Post by CydeWeys »

rolltiide wrote: post #16
CydeWeys wrote: post #3

"This whole business will be completely ruined. The whole point about being a stripper is you go in, get fast cash, no one knows how you’re getting it, it’s not documented and it’s not taken from you." Sorry not sorry that you have to actually start paying taxes on your income like the rest of us. Some of these quotes are really helping to make the case for the law.

But that doesn’t explain why their comp is fixed at the minimum wage of $15/hr This article is a year old.

That's not at all uncommon for jobs that make a lot of money in tips. The minimum wage for servers is $2-something, for example.

Even more so than servers, strippers are a tip-based job.

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