How the numbers work
How the demo numbers are calculated
Every figure on the demo comes from a few simple nail-salon rules. Here is exactly how technician pay, the card-processing fee, and the owner's taxes are worked out — in plain language, with a worked example.
Technician pay
What the nail technician earns
A technician is paid a commission on the services they do, plus all of their tips. This sample uses a 60% commission — the most common nail-salon split — but the owner can set any rate per salon or per technician.
Commission on service (60%)
The technician earns their commission rate on the service they performed — cash service + card service. Tips are never part of this; commission is on services only.
100% of tips
The technician keeps all of their tips — both cash tips and card tips. NailWage does not split or take a cut of tips.
Card fee is the owner's cost
The card-processing fee (about 3% of card sales + card tips) is paid by the owner by default. It is not deducted from the technician's pay — so it does not appear in the technician's column.
The formula
Technician pay = commission % × (cash service + card service) + 100% × (cash tips + card tips)
Worked example
Take Hằng's week: $850 cash + $1,200 card in service, plus $45 cash + $80 card in tips. • Commission: 60% × ($850 + $1,200) = $1,230 • Tips (100% to Hằng): $45 + $80 = $125 • Hằng earns: $1,230 + $125 = $1,355 The 3% card fee on the $1,280 of card charges ($38.40) is the owner's cost — it is not taken out of Hằng's pay.
What the owner keeps
The other 40% — and what comes out of it
The owner keeps the rest of the service revenue (40% in this sample). That is gross, not profit: several real costs come out of it before the owner has anything left.
Owner's service share (40%)
Whatever commission percentage the technician earns, the owner keeps the rest of the service revenue. In this sample that is 40% of service.
Owner-side costs
Out of that share the owner pays the card-processing fees, the employer payroll tax (next section), supplies, rent, marketing, and POS fees. NailWage subtracts these to show the owner's operating profit.
Then the owner's own tax
What's left is the owner's profit before their own income tax. How that profit is taxed depends on the business structure — that part belongs to the owner and their CPA.
Worked example
From Hằng's $2,050 in service, the owner keeps 40% = $820. Out of every technician's share the owner still pays the card-processing fees, the employer payroll tax on Hằng's $1,355 (7.65% = $103.66), plus a portion of supplies, rent, marketing, and POS fees. Whatever is left is the owner's operating profit — and the owner then pays income tax on that net profit.
How taxes work here
Who pays which tax
NailWage shows tax estimates on the owner's side only, to help the owner see what they really keep. It is not payroll filing or tax advice.
Employer payroll tax (7.65%)
On top of wages, the employer pays FICA — Social Security 6.2% + Medicare 1.45% = 7.65% — on the technician's commission + tips. This is the employer's half; the technician's own half is withheld from their pay and is the technician's money, not an owner cost.
Technician pay is gross
The payout shown for each technician is gross wages. The technician's actual take-home is lower after their own withholding (their FICA half + income tax). NailWage does not model the technician's net check.
Owner income tax is separate
The owner pays income tax on net business profit — after deducting wages, card fees, rent, supplies, and other expenses. The exact amount depends on the business structure and is handled by the owner's CPA, so NailWage stops at the pre-income-tax estimate.
W2 vs 1099
Employee or contractor — what changes
You can mark each technician (or the whole salon) as a W2 employee or a 1099 contractor. It only changes the tax view — the gross pay above is the same either way.
1099 contractor — paid gross
You write the check for the full gross (commission + tips), withhold nothing, and report it on a 1099-NEC. You pay no employer payroll tax on a contractor — they handle their own self-employment tax. (Nhi and Vy are 1099 in the demo.)
W2 employee — estimated net check
You withhold the employee's taxes, so NailWage shows an estimated net check = gross − employee FICA (7.65%). For Hằng's $1,355 above: − $103.66 = an estimated net check of $1,251.34. Your payroll provider also withholds income tax and sets the exact figure — this is an estimate to sanity-check it.
Employer FICA is W2-only
The 7.65% employer FICA in the owner view applies only to W2 techs. Mark a tech 1099 and their employer FICA drops to $0 — a real difference in what you keep.
An estimate, not tax or legal advice
These numbers are estimates to help owners review the week. Commission rates, tip handling, and card-fee policy vary by salon, and tax treatment depends on your business structure and state. NailWage is not payroll, tax-filing, or legal software — confirm payroll and taxes with your CPA or payroll provider.
Sources & further reading