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PricingService areasAll services →Accounting and Tax for Ontario Salons, Barbershops and Spas
Chair renters, tips, HST on services and gift cards, retail product and stylist payroll handled by a CPA-led accounting firm that understands how a salon floor runs.
24/7 receptionist, a real person answers.
- Every return is reviewed by a CPA
- No surprise bills
- Reply within one business day
- 24/7 receptionist: a real person answers
- QuickBooks Online, Xero and Dext
- Rated 5.0 stars from 31 Google reviews (read our reviews)
T-Ledgers is a CPA-led accounting firm working with Ontario hair salons, barbershops, nail salons and spas, from booth renters working for themselves to owners with several locations and a team on payroll. Wajahat Ajmal, CPA, FCCA, has been practising since 2020. We handle bookkeeping, HST, payroll and corporate and personal tax, and every return is reviewed by a CPA.
Salons mix employees, commission stylists and chair renters, take tips by card and cash, and sell retail product alongside services. Barbershops and hair salons also have a special EI rule that catches many owners by surprise.
Salon and spa tax and bookkeeping issues we handle
Chair renters: the special EI rule for barbers and hairdressers
If a self-employed barber or hairdresser works in your shop and isn’t the owner, you may be treated as their employer for EI purposes, even if they rent a chair and you don’t pay them. You pay both the worker’s and the employer’s share of EI premiums on their insurable earnings and report it on a T4 with employment code 13 and their gross income under code 83. The worker still handles their own CPP and income tax. We set this up so you’re not caught out at year-end.
Law and source: CRA, Payments and earnings related to barbers and hairdressers; Employment Insurance Regulations s.6(d) (barbering or hairdressing establishments); Insurable Earnings and Collection of Premiums Regulations s.8 (shop owner deemed employer).
Tips and gratuities
Tips you control, for example a mandatory service charge or tips you pool and share out using your own formula, are generally subject to income tax, CPP and EI deductions. Card tips you simply hand back to the stylist in full at the end of the shift are generally treated as direct tips. Tips staff receive directly from clients are generally not subject to source deductions, but staff must still report them. Ontario also stops employers from keeping employees’ tips. We set up your POS and payroll so tips are treated correctly.
Law and source: CRA, Tips received by employees (controlled vs direct tips); Employment Standards Act, 2000 (Ontario) Part V.1, ss.14.2 and 14.4 (employer may not withhold tips; tip pooling); Income Tax Act s.153(1) (source deductions).
HST on services, products and chair rent
Hair, nail, esthetic and spa services are generally taxable, and so is retail product. If you rent chairs or rooms, the rent is generally taxable too once you’re registered. We set up the right tax codes and claim input tax credits on supplies and equipment.
Law: Excise Tax Act s.165 (GST/HST imposed); Excise Tax Act s.169(1) (input tax credits); Excise Tax Act s.148 (small supplier).
Gift cards and packages
HST generally isn’t charged when you sell a gift card, only when it’s redeemed for services or products. Prepaid packages work differently and are generally taxable when paid. We record gift card liabilities and redemptions so your HST and revenue are right.
Law: Excise Tax Act s.181.2 (gift certificates); Excise Tax Act s.168 (tax payable when consideration is paid or due).
Cosmetic and medical spa services
Cosmetic procedures, even when performed by a nurse or doctor, are generally taxable, while medically necessary treatments may be exempt. We review each service on your menu.
Law and source: CRA GST/HST Policy P-256, Qualifying health care supplies.
Retail inventory and equipment
We track retail product inventory so you can see your margin on product sales, and put chairs, dryers, laser and spa equipment on your capital cost allowance schedule.
Law: Income Tax Act s.10(1) (inventory valuation); Income Tax Act s.20(1)(a) (capital cost allowance).
Booth renters running their own business
If you rent a chair, you’re generally self-employed. We handle your T2125, HST registration once you pass the small supplier threshold, and the business share of your tools and products.
Key rules at a glance
← Swipe to compare →
| Rule | What it means for you | Law and source |
|---|---|---|
| Barbers and hairdressers EI | Shop owner pays both shares of EI for chair renters | CRA, Payments and earnings related to barbers and hairdressers |
| Controlled tips | Generally subject to income tax, CPP and EI deductions | CRA, Tips received by employees (controlled vs direct tips) |
| Employees' tips | Employers in Ontario can't keep employees' tips | Employment Standards Act, 2000 (Ontario) Part V.1, ss.14.2 and 14.4 (employer may not withhold tips; tip pooling) |
| Gift cards | HST generally applies when redeemed, not when sold | Excise Tax Act s.181.2 (gift certificates) |
| Cosmetic services | Generally taxable, even by a health professional | CRA GST/HST Policy P-256, Qualifying health care supplies |
Who we work with
- Hair salons
- Barbershops
- Nail salons
- Day spas and esthetics studios
- Medical spas
- Chair and booth renters
T-Ledgers services for salons, barbershops and spas
- Monthly bookkeeping. From $500/month (Scale), with books closed by the 10th; quarterly bookkeeping from $350/month (Growth). Your fixed fee is confirmed after a free call. On monthly plans your books are done by the 10th, and if we're late on our side, that month's fee is waived (see bookkeeping).
- Catch-up bookkeeping, from $1,800 per year. We rebuild past years and file what's overdue (see catch-up bookkeeping).
- Bookkeeping Review, $195/month or $295/quarter. For owners who keep their own books (see bookkeeping).
- GST/HST returns, $150 per return. Filed on your CRA schedule (see GST/HST services).
- Payroll. Quoted after a free call (see payroll services).
- Corporate (T2) and personal (T1) tax. Personal tax returns from $110 + HST/GST, with your final price confirmed after a free call. Corporate (T2) returns are quoted after a free call (see corporate tax and personal tax).
- Virtual CFO, from $2,500/month. Cash flow, margins and growth decisions (see Virtual CFO).
Prices are + HST/GST. Anything without a listed price is quoted after a free call, and you get the price in writing before any work starts.
How we work with salons, barbershops and spas
- Free call. We ask about your team setup, chair renters, POS and how your records are kept.
- Written price. Scope and price in writing before any work starts.
- Setup. POS and tip mapping, HST codes, gift card liability, chair-renter EI tracking.
- Monthly rhythm. Books done by the 10th on monthly plans, payroll and EI remitted, HST filed on time.
- Year-end. T4s including code 13 slips, inventory, T2 or T2125, all reviewed by a CPA.
Why salons, barbershops and spas choose T-Ledgers
- We know how salons run. Chair renters, tips, gift cards and retail margins are everyday topics for us.
- CPA-led, start to finish. T-Ledgers was founded by Wajahat Ajmal, CPA, FCCA, practising since 2020. Every return is reviewed by a CPA before it's filed.
- Proven track record. 202 clients served and $60 million in client revenue managed.
- No surprise bills. You get the scope and the price in writing before we start. If the work changes, we agree the new price with you first.
- Price matching, agreed up front. Have a comparable written quote? Bring it to us before you sign your proposal. We can only match a price when it's agreed before the proposal is signed.
- Fast, human answers. We reply within one business day, and our 24/7 receptionist means a real person answers when you call 866-254-5368.
- In person or online. Meet us in person, by appointment only, at our Etobicoke office (102-89 Skyway Ave, Etobicoke, ON M9W 6R4) or our Mississauga office (100 Matheson Blvd E #204, Mississauga, ON L4Z 3P8), or work with us entirely online.
- Your software, set up properly. We work in QuickBooks Online and Xero, and use Dext so receipts go in with a photo.
Meet your CPA
Wajahat Ajmal, CPA, FCCA, Founder, T-Ledgers Accounting. Verify my CPA Ontario membership.
I started my career as an audit associate at KPMG. Since then I’ve worked as an independent contractor for a tax filing company, preparing returns and handling client questions. I hold a BSc in Applied Accounting from Oxford Brookes University and an MSc in Professional Accountancy from University College London. I’m a Chartered Professional Accountant in Ontario and a Fellow of the ACCA. I started taking on my own clients in 2020 and founded T-Ledgers in 2023.
Every return the firm files is reviewed by a CPA. You can read more about the firm on our About page.
What our clients say
Read more on our client reviews page.
DIY vs a generalist firm vs T-Ledgers
← Swipe to compare →
| DIY | Generalist firm | T-Ledgers BEST VALUE | |
|---|---|---|---|
| Chair-renter EI | Not known about | Sometimes missed | ✓Tracked and reported on code 13 T4s |
| Tips | Mixed into sales | Payroll only | ✓POS tips mapped to payroll correctly |
| Gift cards | Recorded as sales when sold | Year-end adjustment | ✓Tracked as a liability until redeemed |
| Who checks the return before it's filed | You do | Depends on the firm and who's assigned | ✓Every return is reviewed by a CPA |
| How you're billed | Software fees plus your own time | Often hourly; the final bill can vary | ✓Scope and price in writing up front. No surprise bills |
| Getting an answer | Search online or wait on CRA phone lines | Varies by firm | ✓Reply within one business day; 24/7 receptionist, a real person answers |
| Software | Whatever you set up yourself | May ask you to switch to their system | ✓QuickBooks Online, Xero and Dext |
| Meeting face to face | Not applicable | Varies | ✓In person by appointment in Etobicoke or Mississauga, or fully online |
| Price matching | Not applicable | Rare | ✓Available if agreed before you sign your proposal |
Frequently asked questions: Salon and spa
If they’re barbers or hairdressers and you own or operate the shop, generally yes. You pay both shares of EI on their insurable earnings and issue a T4 with employment code 13 and code 83 for their gross income.
It depends on how the relationship actually works. We help you document it.
Yes, including commission pay, tips and T4s.
On tips you control, such as service charges or tips you pool and share out, generally yes. Direct tips, including card tips you pass to the stylist in full at the end of the shift, generally aren’t, but staff must report them.
In Ontario, employers generally can’t withhold or deduct employees’ tips, except in limited cases such as tip pooling.
Generally not when you sell them. HST applies when the card is used.
Cosmetic services are generally taxable, even when a nurse or doctor performs them. We review your menu.
GST/HST returns are $150 per return, catch-up bookkeeping starts from $1,800 per year, the Bookkeeping Review is $195/month or $295/quarter (from $450 per review for complex books). Monthly bookkeeping is from $500/month (Scale) and quarterly bookkeeping from $350/month (Growth). Personal tax returns from $110 + HST/GST, with your final price confirmed after a free call. Payroll and corporate tax returns are quoted after a free call. Prices are + HST/GST. You get the price in writing before any work starts.
On monthly plans your books are done by the 10th, and if we’re late on our side, that month’s fee is waived.
Yes, if you have a comparable written quote and bring it to us before you sign your proposal. We can only match a price when it’s agreed before the proposal is signed.
Yes. Snap receipts with Dext, share documents through our client portal and talk by phone or video. You can also meet us in Etobicoke or Mississauga by appointment.
Book a free call through our contact page or call 866-254-5368. We’ll ask a few questions about your business and send you a written price before any work starts.
Running a salon, barbershop or spa in Ontario?
Talk to a CPA who understands chair renters, tips and salon HST. Book a free call. We reply within one business day, and a real person answers 24/7 at 866-254-5368.
Reviewed by Wajahat Ajmal, CPA, FCCA. Updated October 18, 2026.
Related services: Bookkeeping · Catch-up bookkeeping · Corporate taxes · Personal tax · Payroll · Virtual CFO · Contact us
Related industries: Self-employed · Restaurants (tips and POS) · All industries