Hiring An Employee(s)

mikezap

I've had my license for 3+ years now, and am thinking about hiring a employee to help out with the larger jobs that seem to come my way every once in a while. Most answers from other contractor/friends say it's a pain in the arse. If I do hire, what am I to expect as far as matching taxes and insurances? Will it put me under? Anyone ever hire then get rid of a guy because it's just easier to work small jobs by yourself? Anyone use a payroll service? I'm in Cali.

Mike

ChainsawCharlie

SS & Medicare are 15% of employees pay. Half from the employee, and half from you. There's also Unemployment tax which comes solely from your funds.

Can't help you with the state stuff, as I am not in California.

SLSTech

Contact your local Small Business Assoc, maybe your local Chamber of Commerce - they can get you the info you need or point you in the right direction.

There are numerous "Temp" agencies out there that specialize in construction laborers & up. You may want to look into them as they cover the Workman's Comp, Insurance, taxes, etc... You then end up paying a flat hourly fee for an "employee" without all the hassles. While it is a little more - you have less headaches. If someone is a complete idiot, there done & you can call for another person to fill there place. As long as you have work for them, they are yours. If they go on vacation, you can get another one to fill in the position.

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bwalley

If it is one guy, run him through an employee leasing company or a payroll company.

It might be a little more expensive but in the long run quite a bit easier on you.

In Florida a payroll service I use is a 47% premium, if I meet the minimum weekly payroll there are no other fee's, if not I think it is a $75 per week administrative fee.

So if you are paying your helper $10.00 per hour, he will end up costing you $14.70 per hour, and that covers the W/C, matching taxes, liability and unemployment.

This way you and your clients are covered in case he cuts his fingers off, or falls off of a ladder.

If you do use a payroll service it is illegal and can cause yo to have your coverage voided if you pay him $10 per hour throuh the payroll service and then $5 an hour in cash.

wyoming 1

As far as putting you under you just need to make sure you charge enough to cover all the expenses plus overhead and profit. Side note times might be better now because of lack of work but I tend to go through about 15-20 to get 1 that I would like to stay and work for a lifetime

MALCO.New.York

You mean if the Relapse, Go back out on a Binge and disappear for awhile!

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Mellison

Mike,
There are two things you will need to take care of:
1. Workers comp.
Workers comp is quite easy. Expect to pay between 10 and 12% of an employees salary toward workers comp.

2. Payroll is even easier to handle.
My sugestion is contact a company called Paychex. I have been using them for a while and it is one of the best decisions I have made concerning my business.
As an employer you are required to match there social security and Medicare (FICA)
Paychex will take care of FICA payments as well as all necessary tax witholdings.
Paychex calls for payroll on Friday and the Checks arive by mail on Monday.
Paychex will also mail all quarterly payments and forms to the IRS and State offices if applicable. For the amount of work they perform the price is a bargain.

You should also be aware that the cost of your general liability insurance may increase as they often charge according to the # of employees a company has.

Good Luck,
Mike

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mikezap

I need to add on his UI,WC to his price, + the same for my match, and add payroll service into my overhead. Seems as confusing as cutting stairs, but I guess it gets easier once you do it. What about that jump in comp prices at the 15 to $20 range? I should call my insurance agent too.

Edit: Oh yeah, thanks guys

SLSTech

Mike - that's only half of it
You have to add in the down time (loading trucks, clean up, etc...) Vacations if you have them, additional wear & tear on vehicles - then you can get the true rate you are paying for said employee & need to be charging

Check out Michael Stones site on markup & profit - he has a calculator to help with figuring out your true overhead cost & burdens

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Residential, Commercial, & Industrial Infrared Thermography Scans

Mellison

Not so confusing.
Just some extra work. Trust me when I say the extra help far out weighs the extra work.

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