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Discussion Starter · #1 ·
Been reading the forums, great site!
Wondering if you seasoned owners out there can assist me. Right now, we are paying a daily rate for our two crews we have and the overhead payroll is tough to keep up with. I was thinking about paying them per job at a certain labor rate. Sort of like the auto service industry where a certain job pays a certain # of hours and that is what they get. If it takes a shorter or longer time to complete the job they still get the hours that were assigned to the job regardless.
I would love to hear how you guys handle this. The way we are doing it there is just no incentive to get the job on time and right the first time. Actually, I think they have more incentive to be slow so they know there is work the next day. Thoughts? Thank you in advanced...
 

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Welcome to CT. Please do yourself a favor and fill out your profile to identify what you do, and post a short intro about your business, how long. etc.

As far as your question, the book time allotted to mechanics are for the most part "oranges to apples" until we know what trades you might be referring to.
 

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Discussion Starter · #3 ·
We do a wide variety but mainly remodels and rehabs for investors and property managers. Thanks for the advice:)
 

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I was thinking about paying them per job at a certain labor rate. Sort of like the auto service industry where a certain job pays a certain # of hours and that is what they get. If it takes a shorter or longer time to complete the job they still get the hours that were assigned to the job regardless.
That would be illegal around here. You can pay whatever rate you want, as long as it's minimum or above, but your employees must be paid for every hour they work. Sounds like you are trying to pay your employees as subcontractors.
 

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borrow them the cople hundred bucks to have them start a Inc. then you can pay them as a sub legally and 1099 at end of the year. They can then apply for workers comp exemption for around $50 bucks for two yerars (aprox) at least here in FL then you are off the hook for liability and can pay them what you want and then they have to do all the paperwork and pay all their taxes. That is how I set up my guys and gals I use from time to time and it makes them feel a lot "bigger" since they have their own company. My .02
 

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"borrow them the cople hundred buck to have them start a Inc. then you can pay them as a sub legally and 1099 at end of the year."

I had to read that 3 times to understand what was meant, not written. :eek:
I thought he wanted to borrow money from the employees. :laughing:
 

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"borrow them the cople hundred buck to have them start a Inc. then you can pay them as a sub legally and 1099 at end of the year."

I had to read that 3 times to understand what was meant, not written. :eek:
I thought he wanted to borrow money from the employees. :laughing:
Aren't you going to tell him why that isn't a good idea??

I still can't believe that any self respecting contractor would try to pull that old scam. The IRS has guidelines to determine if that "sub" is actually an employee.:eek:

The fines and back taxes make that a very risky manuver.:rolleyes: The state is where you should start if you are having a hard time determining if you have a sub or employee.:thumbup:
 

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Gumby
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Pay up

Fire them or send them home. Sun Tzu would have you fire the best guy you have, then the others would work twice as hard knowing they might be next.
 

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brm1109
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Not sure if this will help. But what I do is I figure out their hourly wage and then just add 15% to that. 10% to cover insurance and taxes and 5% to cover my doing the paperwork.
Also I have a min. time that I pay my crew (5hrs), if they work for 8 hours they get paid for 8 hours. But if a job only takes 2 hours, they still get paid 5 to go home and relax.
 

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borrow them the cople hundred buck to have them start a Inc. then you can pay them as a sub legally and 1099 at end of the year. They can applie for workers comp exemption for around $50 bucks for two yerars (aprox) and you are off the hook for liability and can pay them what you want and they have to do all the paperwork. That is how I set up my guys and gals I use from time to time and it makes them feel a lot "bigger" since they have their own company. My .02
These scams often run afoul of the IRS, OSHA, and the states. I believe that these methods are more often than not, ways for the GC to immorally avoid SS, payroll taxes, and to rob the employee of his workers comp protection. Generally the GC continues to treat his new sub as an employee, thereby circumventing the laws. The now former employee loses his workers comp protection, but gains the false feeling of being "bigger". A fine way to take advantage of peoples ego and ill-education.
 

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borrow them the cople hundred buck to have them start a Inc. then you can pay them as a sub legally and 1099 at end of the year. They can applie for workers comp exemption for around $50 bucks for two yerars (aprox) and you are off the hook for liability and can pay them what you want and they have to do all the paperwork. That is how I set up my guys and gals I use from time to time and it makes them feel a lot "bigger" since they have their own company. My .02
Yup,then legally you cant tell them what to do, AND they will steal your contractors, been there done that. I have done something similar, but I have 2 or 3 friends with businesses and they subbed from everyone, I got investigated and everything and it was honky dorrey, then he stole one of my bigger contractors last year and worked for him for 15 an hour w paper work.:rolleyes: Basically I helped build a cheapskate competitor that knows most of my contacts. Its not worth the trouble.

Theres a few things I have heard of, I bid jobs for how long they will take, so If i bid it for 5 days and they finish in 4 they get a 5% bonus that you pay at the end of the month. My uncle pays people 12 bucks an hour and but gives them 8 for the summer and then if they dont quit in the three months he gives them the rest all at once. I know there low wages, he owns a farm, a bit different.
 

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Yup,then legally you cant tell them what to do, AND they will steal your contractors, been there done that. I have done something similar, but I have 2 or 3 friends with businesses and they subbed from everyone, I got investigated and everything and it was honky dorrey, then he stole one of my bigger contractors last year and worked for him for 15 an hour w paper work.:rolleyes: Basically I helped build a cheapskate competitor that knows most of my contacts. Its not worth the trouble.

Theres a few things I have heard of, I bid jobs for how long they will take, so If i bid it for 5 days and they finish in 4 they get a 5% bonus that you pay at the end of the month. My uncle pays people 12 bucks an hour and but gives them 8 for the summer and then if they dont quit in the three months he gives them the rest all at once. I know there low wages, he owns a farm, a bit different.
cheapskate competitor
:clap:
 
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