Part-Time W/ Employees - Business - Contractor Talk

Part-Time W/ Employees

 
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Old 04-11-2015, 09:56 PM   #1
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Part-Time W/ Employees


I currently work full-time for a GC and part-time on my own. It is finally time to expand a tad and hire some guys. I would like to make sure they are covered and paid legally. From my understanding liability insurance becomes a huge cost burden for just PT work. Is this correct?

I've done a lot of reading and searching, but I am at a loss for who to contact about hiring PT employees for a PT business. Should I just see what the insurance company has to say?
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Old 04-11-2015, 09:57 PM   #2
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Re: Part-Time W/ Employees


Try a temp agency.

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Old 04-11-2015, 10:00 PM   #3
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Re: Part-Time W/ Employees


Honestly find someone who can work for you on an on call basis. Someone who possibly does exactly what you do.
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Old 04-11-2015, 10:26 PM   #4
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Re: Part-Time W/ Employees


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Originally Posted by griz View Post
Try a temp agency.
That is definitely an option. Wouldn't they still have to be covered by my liability. I think when I was searching I read a thread on here about how there is a minimum for liability. Whether you make $10 or $35,000 you're going to pay the same.
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Old 04-11-2015, 10:38 PM   #5
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Re: Part-Time W/ Employees


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Originally Posted by klintala View Post
That is definitely an option. Wouldn't they still have to be covered by my liability. I think when I was searching I read a thread on here about how there is a minimum for liability. Whether you make $10 or $35,000 you're going to pay the same.
My temp agency covers all liability and workers comp. But they cant work on ladders or at heights. And i wouldn't trust them with anything but a shovel.

I did just see an ad for skilled temp agency I'm looking in to it now.

ticketed carpenters.... http://www.pristinelabour.com/construction/

Last edited by cedarboarder; 04-11-2015 at 10:41 PM. Reason: spelling
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Old 04-11-2015, 10:47 PM   #6
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Re: Part-Time W/ Employees


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Originally Posted by Yianno View Post
Honestly find someone who can work for you on an on call basis. Someone who possibly does exactly what you do.
I could, my only concern is that I'm going to need a PT crew for actual contracted work, not just small t&m jobs. Finding the crew is the easy part, making sure they, the HO and I are all covered is the part I need help with.
I could just 1099 like a lot of guys here do full time all year, but if someone sprains an ankle on the job that's 100% on me. Or if someone were to do some serious damage to the HO's property.

I know we have CPAs for accounting and taxes and attorneys for contracts, but who would be the best to talk to about a situation like this?
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Old 04-11-2015, 10:51 PM   #7
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Re: Part-Time W/ Employees


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My temp agency covers all liability and workers comp. But they cant work on ladders or at heights. And i wouldn't trust them with anything but a shovel.

I did just see an ad for skilled temp agency I'm looking in to it now.

ticketed carpenters.... http://www.pristinelabour.com/construction/
That might be just what I need. I'll look into it!
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Old 04-12-2015, 06:30 AM   #8
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Re: Part-Time W/ Employees


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Originally Posted by Yianno View Post
Honestly find someone who can work for you on an on call basis. Someone who possibly does exactly what you do.
Best advice so far.

You're too small for real employees. Plus if you're asking here that means you don't have an accountant and insurance agent.

These are the two people you need to sit down with for the questions you ask.
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Old 04-12-2015, 08:01 AM   #9
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Re: Part-Time W/ Employees


A part time employee for a part time business? That would be difficult to do. Its hard enough to find people who want to work full time for a full time business.
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Old 04-12-2015, 10:06 AM   #10
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Re: Part-Time W/ Employees


Part time workers for a part time contractor with a full time job? Those workers would have to be contractors themselves to avoid disaster.
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Old 04-12-2015, 12:35 PM   #11
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Re: Part-Time W/ Employees


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Best advice so far.

You're too small for real employees. Plus if you're asking here that means you don't have an accountant and insurance agent.

These are the two people you need to sit down with for the questions you ask.
Being too small isn't the issue. I can get consistent weekend work throughout the entire season. I'll need 2-3 guys for a crew.

I can easily find help and pay them under the table, but I'd rather make it legitimate.

I don't have an accountant and that is exactly why I am asking here. An accountant would help? I can handle pay roll on my own, but you're saying they would be able to help me set up 2-3 part-time employees. I'm meeting with the insurance company next week. Maybe they will have all the answers for me.

I just want to seek the advice of those who are more experienced than me and have possibly been in the same situation.

To me it seems like a good way to build capitol, experience and take the next step towards getting out on my own.
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Old 04-12-2015, 12:56 PM   #12
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Re: Part-Time W/ Employees


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Originally Posted by BamBamm5144 View Post
A part time employee for a part time business? That would be difficult to do.
Quote:
Originally Posted by duburban View Post
Part time workers for a part time contractor with a full time job? Those workers would have to be contractors themselves to avoid disaster.
What would you guys suggest? I need a crew to do the work.

Save enough until I can afford to drop my current position all together. Then when I do have the money hire some guys and hope everything works out?

I'd rather build towards it. I want to be forced to leave my current position because my own company is taking off, not leave solely because I have enough capital saved to safely be able to determine if I can even handle it full time.

There has to be a way(maybe not easy). But I doubt everyone who has their own business went straight from working for someone else to hiring their own full-time crew.

I can understand taking that approach if I didn't need a crew, but I do. Like I said, I can easily just pay cash and not worry about it but I'd rather have these guys covered.
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Old 04-12-2015, 01:18 PM   #13
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Re: Part-Time W/ Employees


Network. I have other contractor buddies that we share workers all the time. It keeps all the guys busy.

Also the guys like the change on occasion.
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Old 04-12-2015, 01:42 PM   #14
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Re: Part-Time W/ Employees


Liability insurance has coverage limits and the premium is based on one of several factors, as a part-time guy you would probably run it off your payroll total. It's not necessarily expensive depending on your classification. You need an agency or agent that will help you shop for policies.

I run my full time guys through an employment agency, I find the guys and the agency checks them out and issues paychecks, handles insurance and offers a couple other perks. It's a bit more expensive but the benefits outweigh the cost in my situation.

A couple other thoughts. You should have an accountant, they save you more than they cost so it's a no-brainer in my book and it can save you from some disastrous situations. If your part-time work requires a crew then maybe it's time to make it your full-time job and just hire one other guy vs. working it part-time with 2-3 guys. I don't know what you're doing part-time so maybe it doesn't make sense but if you're doing building/remodeling it probably does. Sometimes you need to crap or get off the pot.
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Old 04-12-2015, 01:44 PM   #15
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Re: Part-Time W/ Employees


Quote:
Originally Posted by klintala View Post
What would you guys suggest? I need a crew to do the work.

Save enough until I can afford to drop my current position all together. Then when I do have the money hire some guys and hope everything works out?

I'd rather build towards it. I want to be forced to leave my current position because my own company is taking off, not leave solely because I have enough capital saved to safely be able to determine if I can even handle it full time.

There has to be a way(maybe not easy). But I doubt everyone who has their own business went straight from working for someone else to hiring their own full-time crew.

I can understand taking that approach if I didn't need a crew, but I do. Like I said, I can easily just pay cash and not worry about it but I'd rather have these guys covered.
In my line of work, I had to hire a crew. I lined up a few jobs, brought on two guys and worked along with them when I first started.
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Old 04-12-2015, 02:19 PM   #16
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Re: Part-Time W/ Employees


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It's not necessarily expensive depending on your classification.
oddly my insurance is the cheapest bill i have. my cell phone bill is more than my liability insurance for 2 mill

but then again Canadians get screwed on communications

Last edited by cedarboarder; 04-12-2015 at 02:42 PM.
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Old 04-12-2015, 02:35 PM   #17
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Re: Part-Time W/ Employees


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Liability insurance has coverage limits and the premium is based on one of several factors, as a part-time guy you would probably run it off your payroll total. It's not necessarily expensive depending on your classification. You need an agency or agent that will help you shop for policies.
Run it off payroll as in pay as you go? or pay based on how much you make? I can do pay as you go no problem. However, my understanding is that I'll have to give them an estimate of how much I plan on making, and I'll have to pay a lump sum up front. A lump sum based on a minimum. So lets say I guess I'll estimate $30,000 and the minimum is $25,000. I pay a lump some based on the $30,000 I estimated. If I only end up making $15,000 I'll have a huge deficit to overcome. I can understand a minimum for full-time insurance, but it would make it hard for someone going part-time.

I guess that answers my original question tho.. I need to talk to an insurance agent pronto.. they should be calling me next week.

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I run my full time guys through an employment agency, I find the guys and the agency checks them out and issues paychecks, handles insurance and offers a couple other perks. It's a bit more expensive but the benefits outweigh the cost in my situation.

A couple other thoughts. You should have an accountant, they save you more than they cost so it's a no-brainer in my book and it can save you from some disastrous situations. If your part-time work requires a crew then maybe it's time to make it your full-time job and just hire one other guy vs. working it part-time with 2-3 guys. I don't know what you're doing part-time so maybe it doesn't make sense but if you're doing building/remodeling it probably does. Sometimes you need to crap or get off the pot.
I'll look into employment agencies. Your guys don't mind? Does it place any burden on them? Does the agency line you up with workers or do you find the help and have them go through the agency.

The majority, if not all, of the work will be residential concrete. I probably should have specified from the get go. So I'll need a crew, but just on the weekends.


Quote:
Originally Posted by BamBamm5144 View Post
In my line of work, I had to hire a crew. I lined up a few jobs, brought on two guys and worked along with them when I first started.
Thats tempting, but I feel I need to build a little more capital before I take that risk.
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Old 04-12-2015, 04:37 PM   #18
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Re: Part-Time W/ Employees


Talk to your agent. Make sure you understand your policies, and all the requirements (hiring subs with liability, adding all the right employee classifications, etc.).

Hiring through an agency can greatly simplify the insurance picture. It will also remove the temptation to cheat on your taxes, which has been the downfall of many a new contractor, and it will give you a good up-front idea of your fully-loaded labor costs. Finally, it will eliminate any magical thinking about labor costs when you put together quotes. You nominally pay a guy $20/hour, let's say. Up front you find out that you will be paying $40 through the agency. You will price appropriately.
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Old 04-12-2015, 04:39 PM   #19
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Re: Part-Time W/ Employees


If I were in your exact position I would network with other contractors.
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Old 04-12-2015, 06:04 PM   #20
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Re: Part-Time W/ Employees


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If I were in your exact position I would network with other contractors.

It is already complicated enough to run a business with all week to schedule. I can't imagine working full time, scheduling weekend work with several crews of guys. From a professional and personal point of view, Id be hesitant to hire a guy that only works weekends.

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