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Hello Fellow ROOFING CONTRACTORS, My name is phil,I'm in the Indianapolis Area and I have been in the roofing trade for 10 years now and started my own business 4 years ago.
I have been paying my guys as subcontractors, but have been wanting to have employees, as for a little more control, but just wandering the cost, effectivenes and all the xetra paperwork to wander if it is a better system to use. Any feedback would be appreciated to any of you who have been in my same situation. Any Suggestions?
 

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Welcome to the board, Phil!
I think that your biggest hurdle will be worker's comp. I just went through this with a young roofer here and with 4 employees, his comp. ins. was $68K a year. You may be less but look this over before you commit.
 

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pbeeson said:
I have been paying my guys as subcontractors...
I fully understand the special pressures that cause an employer to do this, but this always strikes me as tip-toeing on a scary legal line. I would make a commitment to make "your guys" into "your employees" by whatever means necessary.
 

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Paying each man as an independant contractor, making them cover their own GL and WC, is cheating the system and illegal. Be careful not to advertise that fact because if the IRS hears you are sure to be audited.

Having said that your system of paying your guys like there were subs is probably more common in our line of work, than doing it the right way and paying them like the employees that they are.

Believe it or not there is not much extra cost or paperwork involved in doing it the right way. I use a payroll service that takes care of everything for me. I just call in the hours, and done. 3 days later I have checks in hand to be signed and passed out.

Workmans compensation is tough to get for Roofers. Alot of insurance companies don't want to touch us. I know in IL there is what we call the State Pool, and if we can't find an insurance company to insure us then the State of IL picks it up, although it's more expensive to go into the state Pool it's guaranteed coverage.

When I am bidding, to cover my labor burdens, I double my labor rate to cover my burdens. What I mean is if I pay my guys $15 an hour and I have 4 guys working an 8 hour day this equals $480. I then double it (adding another $480) to cover my FICA, GL and comp. It's not quite dollar for dollar, more like $0.90 for $1, but it's always better to err on the side of caution when bidding. Besides anything left over at the end of the year will go to Christmas bonuses anyways.
 
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