Need to hire an employee

TimetoShine

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Jul 26, 2020
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James Cannon
So I'm looking to hire an employee soon, I've been a one man operation for the last two years. Work is picking up a little bit but I'm wondering how people are paying an employee and what the best strategy is. Should I pay them as a W2 employee or use them as a 1099, my fear is making sure I have enough work to keep them busy for a full 8 hours each day. I'm kind of leaning towards 1099 but am trying to figure out a decent pay scale that would keep them happy, maybe offer incentives if they book a job on their own ect.
 

pgcleaner

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Nov 4, 2020
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Matthew Olive
Better to just find a subcontractor to pass off excess jobs. Just make sure you trust them to rep your brand.

You can't hire an employee and not pay them a W-2, that would be illegal, and you could get in big trouble. Once you start filling payroll taxes you can't stop. That means paying someone to do payroll taxes.

Just stick with another cleaner in your area that you can trust. Especially do not take on an employee if you are unsure of your workload. THAT will bankrupt you FAST.
 

keep it clean

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Dec 3, 2012
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Better to just find a subcontractor to pass off excess jobs. Just make sure you trust them to rep your brand.

You can't hire an employee and not pay them a W-2, that would be illegal, and you could get in big trouble. Once you start filling payroll taxes you can't stop. That means paying someone to do payroll taxes.

Just stick with another cleaner in your area that you can trust. Especially do not take on an employee if you are unsure of your workload. THAT will bankrupt you FAST.
Its not illegal to pay an employee without a w2. If he pays them as a sub he can 1099 them. But they would have to carry their own insurance. I’ve worked this way most of my life. Every contractor I know works this way. But he will have to pay them a lot more then a employee. He also cant hold them to any set hours or days as they are technically “self employed”. It works but its hard to keep them around without consistent work. A day here and there wont cut it. And he would have to not just hire someone this way. He’d need to find a person who works this way for a living. Who bounces from one contractor to another.
 

pgcleaner

Active Member
Nov 4, 2020
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Matthew Olive
Its not illegal to pay an employee without a w2. If he pays them as a sub he can 1099 them. But they would have to carry their own insurance. I’ve worked this way most of my life. Every contractor I know works this way. But he will have to pay them a lot more then a employee. He also cant hold them to any set hours or days as they are technically “self employed”. It works but its hard to keep them around without consistent work. A day here and there wont cut it. And he would have to not just hire someone this way. He’d need to find a person who works this way for a living. Who bounces from one contractor to another.
Yes. I was clarifying the fact that he cannot 1099 an employee. The distinction is important.
 
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Mama Fen

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Jul 18, 2012
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Some advice that I give both carpet and restoration companies in our area is this: go to all the first responders in your area (firemen, police, EMTs, etc), and your local military guys, and pass out business cards while you tell them you're looking for part-time help.

They are usually very energetic, highly motivated people with a strong work ethic.

They don't need babysitters or overseers once they've been shown how to do something.

They're used to the idea that if they don't do their job right, someone may literally die.

They tend to be mature, stable individuals who don't move around or make big life changes much.

Their schedules tend to be crazy (4 days on, 3 days off, etc) and if they're not busy with family they're looking for something to do with their down time.

Start them out as 1099s, and once they retire out of their full-time jobs (which they almost always do early), they are fully-trained and ready to sign on as an employee. A half-dozen of these folks in your roster is usually enough that someone will always be available when you need help. Of that half-dozen, one or two of them may well turn into full-time people.

When the housing market is down, you can also find GCs, plumbers, electricians, carpenters, and such with the same mindset.

Keep in mind that if you want quality, you pay for quality. Don't offer a Marine minimum wage to start. You might not like his response.
 

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