I recently passed a contractor's exam for tree service. My license should be issued shortly, but in the meantime I am trying to figure out what and how to charge for labor.
I pay my guys $15 per hour. I don't yet know what this will cost me once I pay fica, state of ca and worker's comp. So here is my question. Do I add all of those additional charges for labor into my overhead and charge my customers $15 per hour for labor? Or should I figure out what 1 hour of labor costs me and then add overhead and profit to that figure?
For example.. If I pay my worker $15 per hour and then with all of the additional fees (taxes and insurance) it comes out to about $30 per hour, do I then add overhead and profit to $30 per hour? Does this sound as confusing to anyone else as it does to me? I know I would add general liability ins to overhead, but should I add workers comp and taxes to that as well?
I pay my guys $15 per hour. I don't yet know what this will cost me once I pay fica, state of ca and worker's comp. So here is my question. Do I add all of those additional charges for labor into my overhead and charge my customers $15 per hour for labor? Or should I figure out what 1 hour of labor costs me and then add overhead and profit to that figure?
For example.. If I pay my worker $15 per hour and then with all of the additional fees (taxes and insurance) it comes out to about $30 per hour, do I then add overhead and profit to $30 per hour? Does this sound as confusing to anyone else as it does to me? I know I would add general liability ins to overhead, but should I add workers comp and taxes to that as well?
