Benefits for salons and spas, built around who is an employee and who rents a booth

Ares Benefit Group works with salons, barbershops, and spas of about 2 to 50 employees.

How these businesses actually staff

• Booth rental is a classification fact, not a benefits product. If a stylist or therapist is a true independent contractor under IRS rules, they are not put on the salon's group plan or funded through an ICHRA or QSEHRA as an employee. If the salon controls the work in a way that makes the person an employee, the booth-rental label does not control. We will not design a plan that assumes a classification you have not established, and we will not quote an unsourced percentage of shops that use booth rental.
• W-2 receptionists, assistants, and employee stylists are the census. These are the people a group plan or HRA can cover. Part-time hours are common. See part-time employee benefits.
• The owner. A self-employed owner or that owner's spouse is not the intended ICHRA participant. We will look at the entity.
• One shop or a small local group. A second location is still often well under 50 employees. Work location is a permitted ICHRA class.

Structures we compare for a team this size

The usual work is to cover W-2 staff cleanly and to leave true booth renters off the employee plan. A local group plan, an ICHRA, or a QSEHRA can all serve that staff group.

• SHOP and other group coverage, when you want one employer-sponsored medical plan and you can meet eligibility and participation rules.
• A level-funded arrangement, when a carrier offers one for your census. We compare it with fully insured group coverage and do not treat either as automatically better.
• An ICHRA, when you want a set contribution and employees choose individual coverage. Permitted classes include full-time, part-time, hourly or salaried, work location, and a waiting period. It is for employees, not for a self-employed owner.
• A QSEHRA, when you are not an applicable large employer and you are not offering a group health plan. See ICHRA vs QSEHRA if both are on the table.
• Section 125 for pre-tax employee premium contributions on a group plan. A QSEHRA cannot be funded by salary reduction.
• Group life and disability and voluntary benefits.

A company under 50 full-time employees, including full-time equivalents, is generally not required by federal law to offer health coverage. If you have fewer than 25 full-time equivalents and you meet the wage, contribution, and SHOP rules, look at the Small Business Health Care Tax Credit.

Recruiting and keeping employees

If you are trying to hire a receptionist or to move your model toward employee stylists, a specific benefits offer is part of that conversation. It is not a shortcut for classifying booth renters as contractors while treating them like staff.

What to send us

A roster of employees, a list of booth renters or other contractors, hours, and locations.

Tell us about your salon or spa

Our agents are licensed in all 50 states.