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Legal Part Time Employees

 
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Old 12-16-2009, 10:33 PM   #1
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Legal Part Time Employees


So I picked up a few jobs with in the last few days. Another small bath reno, nothing drastic, a living room trim out, a re trim with all new interior doors in the common areas and lastly a guy bought a home with a unfinished room addition, wants me to finish it off. All the exterior work is done and complete, but there is no insulation or dryall and what not....

ANYWHO....I got to thinking I would like to bring on an employee legally and want to know what it takes to do so? How much mark-up is on an employee to cover my legal costs, taxes and insurance? I have a guy that is a cop who used to be in the trades prior to becoming a cop at 30. He is pretty good at what he does and I could use him here and there. He schedule of 4 days on and 4 days off often leaves me with windows where he could be very useful to me.

I guess I have to call my insurance agent tommorrow and talk to him, but is there any heads up you guys can give me? This is all uncharted waters for me.


Thanks
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Old 12-16-2009, 10:42 PM   #2
 
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Re: Legal Part Time Employees


Hit and miss, but have you thought about a temp agency?

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Old 12-16-2009, 10:52 PM   #3
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Re: Legal Part Time Employees


I don't need the temp acency....I have the guy already, I just need to put him to work legally...this is not his primary job so if I use him, great! If I don't, it doesn't hurt him.
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Old 12-16-2009, 10:57 PM   #4
 
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Re: Legal Part Time Employees


My fault I read the original post wrong.
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Old 12-16-2009, 11:02 PM   #5
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Re: Legal Part Time Employees


Here, for any employee part or full-time, you must pay WC, state unemployment, and payroll taxes. If you do a temp agency. all that's included in the hourly wage they charge. And depending on amount of wages paid, your liability ins. may or may not increase.
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Old 12-16-2009, 11:16 PM   #6
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Re: Legal Part Time Employees


Quote:
Originally Posted by TBFGhost View Post
So I picked up a few jobs with in the last few days. Another small bath reno, nothing drastic, a living room trim out, a re trim with all new interior doors in the common areas and lastly a guy bought a home with a unfinished room addition, wants me to finish it off. All the exterior work is done and complete, but there is no insulation or dryall and what not....

ANYWHO....I got to thinking I would like to bring on an employee legally and want to know what it takes to do so? How much mark-up is on an employee to cover my legal costs, taxes and insurance? I have a guy that is a cop who used to be in the trades prior to becoming a cop at 30. He is pretty good at what he does and I could use him here and there. He schedule of 4 days on and 4 days off often leaves me with windows where he could be very useful to me.

I guess I have to call my insurance agent tommorrow and talk to him, but is there any heads up you guys can give me? This is all uncharted waters for me.


Thanks

There is no real difference between a part time and full time employee. You still need Workman's comp. Your WC rate will be based on annual payroll, with a minimum that you probably won't hit but still be paying a premium no matter what.

You'll still be doing payroll taxes and withholdings. Part timer or full timer, it's all the same.
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Old 12-16-2009, 11:24 PM   #7
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Re: Legal Part Time Employees


any idea what WC is going to cost? I know it can be all over the place...I am going to find out for sure tommorrow by calling my agent, but I am curious right now...

What can I expect to pay in payroll taxes and what not?
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Old 12-16-2009, 11:30 PM   #8
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Re: Legal Part Time Employees


Quote:
Originally Posted by TBFGhost View Post
any idea what WC is going to cost? I know it can be all over the place...I am going to find out for sure tommorrow by calling my agent, but I am curious right now...

What can I expect to pay in payroll taxes and what not?
It will vary by ins. carrier and area. My quote for comp earlier this year was 17.2% for residential carpentry (they charge you big time when saws are involved.) State unemployment for new employers is at 5.4%. And IIRC payroll will be 7.65%. So, about 30+% on top of whatever hourly wage I pay. And I know that is cheap compared to some places.

I did think about getting a part time helper and the minimum premium for comp was $750 on $1500 payroll. Whether I paid $1 or $1500, the premium was still $750.
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Old 12-16-2009, 11:37 PM   #9
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Re: Legal Part Time Employees


Yeah, 30% on top of wage is pretty common.

Except this is in regard to part time. So like I said you will probably be faced with a minimum payroll. For instance they might hit you with a 30,000 payroll minimum. So you might have to pay $2500 to start for 30K in payroll.

Now you hire your dude and lets say he works 10 hours. Those first 10 hours are costing you $250 an hour for WC. Now if you do 100 hours with him in the year, it's $25 an hour for WC.

See what I'm getting at?
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Old 12-16-2009, 11:40 PM   #10
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Re: Legal Part Time Employees


Go talk to a local temp agency... They should be glad to let you bring your own employee (their new client).

They will handle all taxes, w/c insurance, and a little for their trouble..

I am paying a .5 markup rate... Worth every penny to me

Totally legal, legit and insured

And, the best part..... I can drop em from up to 30'
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Old 12-17-2009, 01:57 PM   #11
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Re: Legal Part Time Employees


I did that one time. Had a guy who I took the the temp agency. He worked for them and I paid them. It cost a little but i figured was actually cheaper for me than paying him direct.
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Old 12-17-2009, 02:09 PM   #12
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Re: Legal Part Time Employees


Another way is through an employee leasing firm. Same basic concept as a temp agency but cost tends to be less.
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Old 12-17-2009, 02:14 PM   #13
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Re: Legal Part Time Employees


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I am paying a .5 markup rate... Worth every penny to me
Your mark up rate is 50% ? So if you pay $400 the temp agency charges you $600 is that correct ?

I would think it is in the 40 - 50% range for a small account ?
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Old 12-17-2009, 05:19 PM   #14
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Re: Legal Part Time Employees


In Jersey, check out Contractors & Builders. For us, we bill out at $X/hr, and they supply guys (welders) at $X-divided-by-1.7, so it's an easy decision to make. At least it was when it was super busy. Now we've got a little bit of a pecking order of guys we're trying to bring back as work picks up. We haven't gone to the C&B well in almost a year.

From experience, if you've got a hump to get over for a few months, they're a good option. Everyone now and then you get a character with three different names. Or the guy that calls you looking to get bail money at 9 in the morning when you're standing there waiting at the job site for him. But you're in a better situation, since you already have a guy you know to give them that can work your schedule.
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Old 12-17-2009, 06:07 PM   #15
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Re: Legal Part Time Employees


So basically, I go to these people with my guy and say, I want to hire him through you.
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Old 12-17-2009, 06:11 PM   #16
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Re: Legal Part Time Employees


Quote:
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So basically, I go to these people with my guy and say, I want to hire him through you.
Basically, that is correct. I would suggest an appointment though. They will be happy to talk to you.
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Old 12-17-2009, 06:29 PM   #17
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Re: Legal Part Time Employees


If it were me, I'd call and say "hi I've got a guy I want to hire part time, and he knows my schedule, but I know you guys have more of an operation going on than I do when it comes to insurance and the alphabet taxes. Can I give you his number, and then can I hire him through you guys, so I don't have to deal with all the paperwork?" I think that's a starting point.

I had lunch at the Spinning Wheel yesterday, by the way. I also have a client that might have to build a water treatment building in their complex this spring, off of Potterstown Road. That's your backyard. I'll let you know when the bid goes out, if you want. I can't build it because I'm the paid consultant on this one (conflict of interest).
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Old 12-17-2009, 06:36 PM   #18
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Re: Legal Part Time Employees


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If it were me, I'd call and say "hi I've got a guy I want to hire part time, and he knows my schedule, but I know you guys have more of an operation going on than I do when it comes to insurance and the alphabet taxes. Can I give you his number, and then can I hire him through you guys, so I don't have to deal with all the paperwork?" I think that's a starting point.

I had lunch at the Spinning Wheel yesterday, by the way. I also have a client that might have to build a water treatment building in their complex this spring, off of Potterstown Road. That's your backyard. I'll let you know when the bid goes out, if you want. I can't build it because I'm the paid consultant on this one (conflict of interest).
Sure, I would prob pass that on to a GC that I work for alot...I am more of a finish carpenter....I was at the spinning wheel yesterday, my truck was anyway. I parked there a 1pm to head to court with said GC. It was the plain jane white Ranger with a ladder rack on it parked in the gravel. We are state witnesses in a hit and run case involving a dump truck the GC sold to a certain man. GC gave him 1 hour to get the truck home and return the plates...guy never came back...got drunk in his new truck and smashed into a bunch of cars....no insurance on the truck, GC canceled the insurance that night.....now it is a big mess.... But I am there to testify that I did indeed see Mr. Joe Blow Smoe, exchange money for the truck and drive off in it....

The guy hit the cars, and bailed out on foot and ran....police came to the accident and started looking for the owner (who the plates came back to)...lucky for the GC that Police Department was smart enough to call the one local to the GC's home and sent cops up there to see if it was home...he was so that gave him a rock solid aliby so no one can say he was driving the truck...that and the description of the suspect was a black, bald headed man...the GC is about as pale white as you get...Irish...

Last edited by TBFGhost; 12-17-2009 at 06:40 PM.
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Old 12-17-2009, 08:57 PM   #19
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Re: Legal Part Time Employees


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Your mark up rate is 50% ? So if you pay $400 the temp agency charges you $600 is that correct ?
That's correct

I have had businesses with employees....accountants, payroll, unemployment, fica, state, fed, w/c...

I fill out a timecard, they turn it in and get payed next friday...
All I get is an invoice and write out one check
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Old 12-17-2009, 11:30 PM   #20
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Re: Legal Part Time Employees


I use a leasing company for my helper. Seems to work out good for me. I call in hours once a week, they mail out an invoice and do an electronic debit from my checking. They will also do certified payroll reports, and accept applications and interview potential employees.

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