How to Fill Out Form W-4 and Form I-9: A Guide for Salon Owners

Of the entire 1099-to-W-2 conversion process, W-4 and I-9 tend to make people pause the most — the names alone sound official and intimidating. In reality, both are short, straightforward forms, and this article walks through each section step by step.

1. What Form W-4 is and what it's for

Form W-4 tells the salon how much federal income tax to withhold from each paycheck. The employee fills this out themselves — the owner's role is simply to hand it over, briefly explain it, and file it once complete.

2. Step-by-step guide to Form W-4

The current Form W-4 has 5 steps, but most employees only need to complete Step 1 and Step 5 — the rest only apply in specific situations:

💡 For most nail or restaurant workers without special circumstances, completing Step 1 and Step 5 is all that's needed — much shorter than most people expect.

3. What Form I-9 is and what it's for

Form I-9 verifies two things: who the person actually is, and whether they're legally authorized to work in the U.S. This is a federal legal requirement for every W-2 employee in the U.S. — not something specific to your salon, and not about "suspecting" anyone.

4. Step-by-step guide to Form I-9

Form I-9 is split into two clear sections:

Section 1 — Employee fills out (on their first day of work):

• Name, address, date of birth, SSN
• Status: U.S. citizen, permanent resident, or authorized to work under another category
• Signs to confirm the information is accurate

Section 2 — Employer fills out (within 3 business days of the start date):

• Physically examines the employee's original documents (photocopies aren't accepted)
• Records the document information reviewed
• Signs to confirm the verification was completed

Acceptable documents for verification (the employee only needs to choose ONE of the following options, not both):

5. Other forms, depending on your situation

Besides W-4 and I-9, your salon may also need:

• State withholding form — if the state requires separate state income tax withholding.
• Direct deposit form — if paying wages via bank transfer.
• Benefits enrollment form — if the salon offers insurance, paid leave, etc.

💡 A helpful tip: prepare a "new hire packet" with all these forms ready to go. Each time someone converts or joins as a new employee, you can simply hand it over and guide them — no need to search for everything from scratch each time.

Frequently Asked Questions

Q: What if an employee makes a small mistake on their W-4? 

A: It can be corrected any time by submitting a new W-4 — there's no limit on how many times it can be updated during the year.

Q: What if an employee doesn't have a U.S. passport — how do they complete I-9?

A: Still entirely possible, using Option B — combining a driver's license (or state photo ID) with a Social Security card or another document on the USCIS-approved list.

Q: Do these two forms need to be sent to the IRS or USCIS?

A: No. Both are kept on file at the salon and only need to be produced if requested during an official inspection.

Want a ready-made checklist of all these forms as a file you can save and reuse? Message TAXtical for the free file →

Sources: IRS — Form W-4 Instructions, USCIS — Form I-9, List of Acceptable Documents

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