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Just curious how you guys run your employees. Currently I send the guys I hire down to a staffing agency to sign up, then they come to work for me. The agency takes care of all of the work comp, unemployment insur., and all of their taxes. This works pretty good for me because I do not have to carry the work comp policy and have to pay $2k a month or more. If I have a month of down time I dont pay the unemployment the agency does, plus I never have to worry about doing their taxes. I pay roughly 40% above their base pay for this service, but after looking into all of the head aches from doing it in house this seems to be worth the money. For example if I decide to pay a guy $20.00 per/hr I will endup paying $28.00 after the agency adds their extra. Trying to find good carpenters in my area is very difficult because everyone wants to be 1099.

Just curious if anyone else does anything similar or has ideas of how to keep this inhouse but not pay out the a$$ in work comp premiums?
 

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Just curious how you guys run your employees. Currently I send the guys I hire down to a staffing agency to sign up, then they come to work for me. The agency takes care of all of the work comp, unemployment insur., and all of their taxes. This works pretty good for me because I do not have to carry the work comp policy and have to pay $2k a month or more. If I have a month of down time I dont pay the unemployment the agency does, plus I never have to worry about doing their taxes. I pay roughly 40% above their base pay for this service, but after looking into all of the head aches from doing it in house this seems to be worth the money. For example if I decide to pay a guy $20.00 per/hr I will endup paying $28.00 after the agency adds their extra. Trying to find good carpenters in my area is very difficult because everyone wants to be 1099.

Just curious if anyone else does anything similar or has ideas of how to keep this inhouse but not pay out the a$$ in work comp premiums?

I always found that using a payroll service was the biggest pain and a waste of money.

Either way, you have to pay the worker's comp portion and you are probably paying the highest rate and wasting money. When you buy your own worker's comp you can shop for the best rate and maybe save thousands of dollars every year.

It is always easier, faster and you have more control when you do everything in-house. With a payroll service you still need to be organized and you need a system to make sure the payroll service is accurate. You still need to spend your time to track the pay and submit it to the payroll service. Then, you have to wait for the results and when there is an error you have a 3-way tug of war that can be difficult to resolve. Then, you have to pay the payroll service and you have to do your in-house record keeping and maybe pay twice for a job that can be accomplished in a few minutes every week.

"Too many hands spoil the soup" or "KISS"
 

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He's not using a payroll service. Rather, he's using a staffing agency, which is much akin (if not technically the same as) to a temp agency/service.

Those individuals become W-2 employees of the staffing agency, ergo he is not responsible for their worker's comp, FICA-Medicare contributions, etc. The staffing agency is.

Typically, the forty percent add-on referenced is the going rate.
 

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you could always look into hiring part time workers too.....

not everyone is looking for 40 hours a week...i found a guy who has his own website company...he's just looking for 20-30 hours a week and works on his own business on his off days..

i pay him $15 an hour and with all the extra's he only costs me $18

part time is the cheapest way to go and i found tons of people interested with unique situations
 

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I us a staffing agency for my snow removal guys in the winter. I had no issues with them this winter but its getting expensive at 42.8 % rate. I kept one guy who had been full time since the weather has been good. I'm consisting a payroll soon.
 

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I use a local payroll service.
I spend approx. ONE minute per week on payroll.

I phone in the hours to the payroll company( usually 5:00 AM sunday morning so I don't have to talk to a human!).

Paychecks arrive by mail on Tuesday

It costs me about $15 for the first check-and about $1.50 for each additional check. plus postage.

for me it's usually under $20/week. Absolutely ZERO chance I could personally do it for anywhere NEAR that.

payroll service does all the witholding, all the submittals, files the quarterly taxes etc, reports etc.

this March I had my first workers Comp. audit in over 25 years of business.

auditor comes to my place- I hand her all the reports/relevant paperwork generated by the payroll service...........

auditor says " Certified Payroll?- we LOVE them- this is going to be easy!"

she spent a few minutes going through things-we talked about the work I do--------she then LOWERED my workers Comp. Rate and we proceeded to spend about 20 minutes talking about antique pie recipes ( buttermilk pie, shooflie pie, jim and andy pie, funeral pie......)

gotta love the payroll service!
stephen
 

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I gotta say, I couldn't imagine spending over $800 a year on a payroll service ($20) a week when a couple hundred checks is less than $100.00

It takes me literally 5 minutes a week to cut 6 checks and then about a half hour every quarter to pay the taxes to the proper places. The software I use let's me know the exact amount I need to pay and to where.
 

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I gotta say, I couldn't imagine spending over $800 a year on a payroll service ($20) a week when a couple hundred checks is less than $100.00

It takes me literally 5 minutes a week to cut 6 checks and then about a half hour every quarter to pay the taxes to the proper places. The software I use let's me know the exact amount I need to pay and to where.
What software are you using? I'm always looking for good software like that...
 

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You can hire an accountant to assist you if you want to keep it in house. My mom was an accountant for 40 years so she helps me out whenever I get stuck. But I still find it hard to keep up after working a long day then coming home having to think about book work and taxes.
 

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My guys costs me between $3 and $3.50 an hour between insurance and employer taxes. I can't see paying $200 a week more than i do now to save the less than $200 a quarter I pay my accountant to my quarterlies.
 

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I gotta say, I couldn't imagine spending over $800 a year on a payroll service ($20) a week when a couple hundred checks is less than $100.00

It takes me literally 5 minutes a week to cut 6 checks and then about a half hour every quarter to pay the taxes to the proper places. The software I use let's me know the exact amount I need to pay and to where.
Bam,
I would happily pay 3-4 times what I pay each week not to have to eff around with that--
but then I am not worried about $20/week ------

AND THE COST OF THE CHECKS ?????????????
you have GOT to be kidding me.

Let's say you actually CAN do it in 5 minutes a week?-well that's you and you can decide accordingly.

but I am speaking for ME-- and I know full well I couldn't do it in 5 minutes a week-or anywhere near that. Even if I could- I wouldn't remotely be interested in doing so to "save" less than $20.

Every sunday morning I come downstairs and let my retrievers out to take a pee around 5:00 AM-when we all come back in I pour the relevant kibble in the relevant bowls-and while they gobble that down, I pick up the phone and call in our hours for the week.

ANY of you who have ever seen a Lab or a Chessie eat a bowl a food know how little time I have invested in payroll each week.

what you DON'T know is how much money the payroll service has saved me over the years.( I have talked about this on this forum before....)

when I first started using this service 7-8 years ago or so- the gal who was handling my account took down my relevant info. A couple days later she calls me up and says " YOU are paying WAAAAAAAAAY too much for workers comp. We can do something about this for you."

where I live- workers comp. is run by the state-and as you might imagine roofers pay high rates- possibly the highest. what my payroll gall did was-- she took me OUT of a risk pool composed of other roofing contractors---------and put me in a lower risk/lower rate pool. Even though I live and work in an urban environment-she had me join the local Farm Bureau ( of all things)

In my first year she saved me $THOUSANDS- over the last 7-8 years she has saved me TENS OF THOUSANDS of $$$$$.

this past march- I had my first workers Comp. Audit of my life. After reviewing the records compiled by my payroll service and talking a few minutes with me- the auditor LOWERED my rate even further.

Bam- I can take an educated guess at what workers Comp rates you are paying-and I KNOW what I am paying....... I am almost certainly paying LESS than 1/3 your %

It wouldn't be a stretch to say that in the first week on the job my payroll service saved me a lifetime of weekly payroll servicing fees.

so I am really not interested in doing it myself to "save" less than $20/week

Look at the situation from a different angle. As contractors we all sub out things like roofing,or drywall,or painting,or flooring or electrical work or plumbing-------------

things that we don't want to do-or things that we realize that a specialist will do faster/better/cheaper and will have detailed specialists knowledge of..........

We may flatter ourselves by thinking that we can do a workmanlike job of all of those things................ but we really can't compete with the specialist...........

why would a payroll service be anything different.

Best wishes all,
stephen
 

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Stephen, are you saying that doing your own payroll is a womans job?
I'm not saying you're wrong or right, it just caught me off gaurd and made me laugh.
 

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I reread it and not sure if that was your intent or not.
 

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Stephen H said:
Bam, I would happily pay 3-4 times what I pay each week not to have to eff around with that-- but then I am not worried about $20/week ------ AND THE COST OF THE CHECKS ????????????? you have GOT to be kidding me. Let's say you actually CAN do it in 5 minutes a week?-well that's you and you can decide accordingly. but I am speaking for ME-- and I know full well I couldn't do it in 5 minutes a week-or anywhere near that. Even if I could- I wouldn't remotely be interested in doing so to "save" less than $20. Every sunday morning I come downstairs and let my retrievers out to take a pee around 5:00 AM-when we all come back in I pour the relevant kibble in the relevant bowls-and while they gobble that down, I pick up the phone and call in our hours for the week. ANY of you who have ever seen a Lab or a Chessie eat a bowl a food know how little time I have invested in payroll each week. what you DON'T know is how much money the payroll service has saved me over the years.( I have talked about this on this forum before....) when I first started using this service 7-8 years ago or so- the gal who was handling my account took down my relevant info. A couple days later she calls me up and says " YOU are paying WAAAAAAAAAY too much for workers comp. We can do something about this for you." where I live- workers comp. is run by the state-and as you might imagine roofers pay high rates- possibly the highest. what my payroll gall did was-- she took me OUT of a risk pool composed of other roofing contractors---------and put me in a lower risk/lower rate pool. Even though I live and work in an urban environment-she had me join the local Farm Bureau ( of all things) In my first year she saved me $THOUSANDS- over the last 7-8 years she has saved me TENS OF THOUSANDS of $$$$$. this past march- I had my first workers Comp. Audit of my life. After reviewing the records compiled by my payroll service and talking a few minutes with me- the auditor LOWERED my rate even further. Bam- I can take an educated guess at what workers Comp rates you are paying-and I KNOW what I am paying....... I am almost certainly paying LESS than 1/3 your % It wouldn't be a stretch to say that in the first week on the job my payroll service saved me a lifetime of weekly payroll servicing fees. so I am really not interested in doing it myself to "save" less than $20/week Look at the situation from a different angle. As contractors we all sub out things like roofing,or drywall,or painting,or flooring or electrical work or plumbing------------- things that we don't want to do-or things that we realize that a specialist will do faster/better/cheaper and will have detailed specialists knowledge of.......... We may flatter ourselves by thinking that we can do a workmanlike job of all of those things................ but we really can't compete with the specialist........... why would a payroll service be anything different. Best wishes all, stephen
Okay, it took me 10 minutes tonight for 6 checks because I had to go downstairs to preheat the oven.

Work comp rates have nothing to do with payroll services. What your payroll service shows the auditor is the same thing I should the auditor. Work comp rates go down each year you don't have a claim, if you're paying 6% for your work comp rate that's excellent and wish I could do the same.

I know it works for you and that's great but I'll pay myself $840 a year for less than 4 hours of work a year.
 

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Stephen, are you saying that doing your own payroll is a womans job?
I'm not saying you're wrong or right, it just caught me off gaurd and made me laugh.
I am not sure where you would have got that idea.

this payroll service was referred to me by my neighbor- he uses it for his company

Patricia handles his payroll- but patricia delegated my account to Sandy.
Sandy ( a gal)- handled the account for years untill 2013-when SHE handed it off to Tom-who takes care of it now. Male/Female has nothing to do with it- I just know I ain't doing it.

also- Bam would like to think that workers Comp rates have nothing to do with payroll servicing- in fact he could not possibly be more wrong.

Prior to hiring the payroll company- I handled payroll myself when I had employees . My workers comp. rate was what the State instructed me to pay( WC is through the state here....)-and it was well in line with other similar contractors that I know here.........

so- I was able to execute the basic system-and I was familiar with MY operation- but that's IT

the payroll service--- has an inside look at HUNDREDS- probably thousands of payrolls- they have an inside look at the workings of MANY more small contractors etc.- than I ever would- so sandy knew what was possible in a way I NEVER would( and YOU never would) since we are never going to have that level of experience.

not to belabor the obvious- but we apply this logic to other areas of contracting
Sure- you are competent to pour that slab- but wouldn't your concrete guy do it better?

I can replace an electrical outlet------ but my electrician knows WAY more about it than I do----

Plumbing?- doesn't a good plumber have knowledge of techniques ,codes and FITTINGS- that I am never going to stumble across at Home Depot???

Haven't you ever had a drywall sub or a siding sub come to you and say"- hey- in the future- if you frame this situation THIS way- or put in blocking THAT way it will solve problems X,Y, and Z" ?

cmon folks-- you are not going to take advice from an expert in their specialty- because you are convinced you know everything about it by virtue of the tiny segement of that specialty you have actually been exposed to????

In fact- why does a fourum like this exist- if not to learn from the experience of a greater pool of knowledge- than each of us would stumble across on our own in our own little neck of the woods????

Best wishes all,
stephen
 

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That's what insurance brokers do, look for the best rates. I believe all companies spend one year in the state pool then you can opt out and find your own.

Writing a paycheck is much more simple than rewiring a house.

All I'm saying is it's easy. Take less than a minute a check then maybe a half hour at the end of the month to disperse the money where it should go.

Then again, I also assumed all contractors use accounting software like Quickbooks or peach tree.
 
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