[Mike Finley]

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.

 

[Mike Finley]

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?