July 2009 - Oregon
Taking License | by Kraig Bohot
The Oregon Health Licensing Agency (OHLA) doesn’t oversee how businesses or individuals report their income for tax purposes.
However, we are sometimes questioned by practitioners who are confused about whether or not they are independent contractors and who is responsible for tax reporting.
According to the Board of Cosmetology’s Oregon Revised Statutes (ORS) 690.005(10), “Independent contractor” means a practitioner…who is not under the control and direction of a facility license holder.
ORS 690.057(2) states further:
A registration shall confer the right to an independent contractor to advertise and directly offer practitioner services to the public in a licensed facility or a facility operating under a temporary facility permit.
Most of the nearly 7,000 cosmetology practitioners in Oregon registered as independent contractors understand the basics of practicing as an independent contractor.
But when questions of commissions, taxes and reporting arise, practitioners may feel as if they need to hire a tax attorney to determine who is responsible for reporting and other requirements.
OHLA Looks to Experts for Advice
Hopefully, you might be able to save some dollars and get answers to your questions without engaging the services of a tax law expert.
OHLA is looking to the expertise of the Internal Revenue Service (IRS), the Worker’s Compensation Division, Department of Consumer & Business Services, and others to clarify current tax laws and help ease the confusion.
We are exploring how best to be a potential conduit for independent contractor tax reporting information, whether it be by holding a workshop, developing a special answers-to-frequently asked questions (FAQ) section on our Web site at www.oregon.gov/OHLA, or providing other resources or activities that assist practitioners.
If you’re interested in attending a workshop on the subject, contact me at 503-373-1939 or kraig.bohot@state.or.us.
Independent Contractors & Taxes: Resources
• Northwest Stylist, April 2009
www.nwstylist.com/archives_nw.html• IRS Self-Employed Individuals Tax Center
www.irs.gov/businesses/small/selfemployed/index.html• OHLA Independent Contractor FAQ
www.oregon.gov/OHLA Coming soon to the agency Web site
In addition to a revised definition of epidermis, new requirements related to assumed business names and more, new Oregon Administrative Rules (OAR) for the Board of Cosmetology that became effective June 1, 2009 also make explicit requirements for cleaning and disinfecting foot spa equipment (rule addition in bold):
OAR 817-010-0101(5) All areas of foot spa equipment shall be cleaned and disinfected with a high-level disinfectant after use on each client, including removal of safety drain screens and clearing all debris from the filtration system.
Find links to the new rules at http://www.oregon.gov/OHLA/COS/COSlaws_rules.shtml, including rule highlights.
How many practitioners and facilities are active in Oregon? (Numbers in parentheses +/- change from previous month.) According to Oregon Health Licensing Agency (OHLA) records as of June 26, 2009:
Practitioners 31,223 (-19)
Facilities 4,487 (-14)
Independent contractors 6,903 (-23)
Certificate of ID 229 (+4)
Barbering 5,473(-32)
Esthetics 13,537 (-30)
Hair Design 21,121 (-10)
Nail Technology 14,718 (-61)
Practitioner application, examination and certification fees as well as late fees increased on July 1, 2009. The Oregon Health Licensing Agency (OHLA) and Board of Cosmetology postponed the fee increase from October 2008 to July 1, 2009 in response to stakeholder feedback.
Visit www.oregon.gov/OHLA/COS for more information.
To avoid late fees, renew online with OHLA’s Online License Renewal. Just click on the “I’m ready to renew my license online” link under OHLA Resources at www.oregon.gov/OHLA.
Do you have a question about licensing or regulatory compliance issues? This new monthly feature provides answers. To submit a question, e-mail kraig.bohot@state.or.us or call 503-373-1939.
Q: How often should I replace my disinfectant solution with new solution?
A: While there isn’t a specific regulatory requirement, OAR 817-010-0065, Requirements and Standards, states that you must follow the manufacturer’s instructions:
Find FAQ Answers Online! Find more answers to frequently asked questions online at www.oregon.gov/OHLA/COS/COS_FAX.shtml.
House Bill 3232, the Oregon Health Licensing Agency’s key legislation in 2009, passed both the Oregon House and Senate and was scheduled to be signed into law by Governor Ted Kulongoski as the 2009 Legislative Session neared its end in late June.
Of interest to practitioners, particularly estheticians, is the HB 3232 provision allowing OHLA to issue a “specialty certificate” to recognize post-graduate education and training as well as establish continuing education requirements for specialty certificate holders.
OHLA will establish the specific requirements of specialty certification during agency administrative rulemaking after HB 3232 becomes effective on January 1, 2010. Check for updates at www.oregon.gov/OHLA.
To view HB 3232 in its entirety: www.leg.state.or.us/09reg/measpdf/hb3200.dir/hb3232.intro.pdf
Oregon Health Licensing Agency
700 Summer Street NE, Suite 320 • Salem, OR 97301-1287
Licensing Office (503) 378-8667 • Enforcement Unit (503) 378-4294
www.oregon.gov/OHLA
OHLA Agency Staff:
Brian DeForest, Acting Director
Tim Molloy, Regulatory Operations
Board of Cosmetology:
Michael D. Snook, Salem - Chair
Debora Masten, Salem - Vice Chair
Linda Bergmann, Florence
Patricia A. Hall, Pendleton
Herb Hirst, North Plains
Sharon Wiser, Lake Oswego
Shelly Couch, Gladstone
