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View Full Version : Adding a man to my 1 man crew


kylecal91
02-24-2010, 05:14 PM
Hey guys, getting more business this year, think I'm going to have to add a man to my 1 man crew. Anyone know what paperwork and insurances I need for a part time employee? thanks.

FourTrees
02-24-2010, 06:34 PM
Go through an payroll agency. Honestly there cut is worth having for less stress frustration remembering every little detail.

brucec32
02-24-2010, 07:04 PM
You'll have to file and deposit payroll taxes like Fed income tax deductions, FICA (ss and medicare of about 7.5% deducted from his pay plus a similar amount that YOU match), and state income taxes.

You may have some unemployment insurance premiums to make as well.

You may want to consider a Workers compensation policy which covers you if your employee gets hurt on the job and sues you. You probably are not required to have it in your state with just one employee, but you may wind up working for your employee one day if you don't and he hurts himself due to something he claims you should have prevented. Or even if he just claims it, as the policy's forgotten big value is to pay for your defense if sued. Most folks can't afford a lawyer to defend themselves if an employee finds an ambulance chaser in the phonebook.

You will also need to notify your commercial liability insurer and let them know you have a new yahoo(I mean employee) out there who they may decide will wreak havoc and so they may raise your rate, as it's assumed employees are more accident prone than owner operators.

Finally, if the employee so much as backs the truck into the garage, you should have him on your commercial auto policy, otherwise you aren't covered if he takes out something in the truck. That will mean a rate increase as well, as they assume the owner is a little more with it driving than employees.

Add it up, and one can see how it's hard to compete with the cheaters out there who just hand someone cash and don't deduct it on their own taxes since they don't pay any anyway!

kylecal91
02-25-2010, 02:49 PM
Thanks for the input guys. I'm looking into a payroll agency right now.

FourTrees
02-25-2010, 04:12 PM
Call around get some quotes, payroll services are the way to go.


There are some really large companies that even find it useful to use payroll services.

Find one that takes care of everything, good ones will agree to pay any penalties for anything they misfile. They handle it all and some only charge like $45 or 2% per payroll.

IF you consider all that hiring costs you in headache paying someone really helps. Do what you are good at --- mowing/landscaping. Let the professionals take care of employee needs.

Sending Checks/Direct Deposit, Tax withholding FED STATE SS MEDICARE, unemployment, workers comp, employee handbooks, insurance (they can under some conditions offer group rates), discipline actions legally (most companies mess up disciplinary actions horribly placing themselves at risk), provide you as employer with good info, and more.

JayD
02-25-2010, 04:54 PM
Good advice guys....I was needing that info too. I thought I read somewhere about not having to do some of this until you have three employees, what is this about, I cant remember?
My brother in-law would be helping me but I'm not sure it will be 40 hrs a week. Is there different laws for part time and full time workers?

Thanks Guys...

brucec32
02-26-2010, 11:10 PM
Your state's sec of state's office (or equivilent) will probably have something on the web about the various requirements when hiring employees.

The three employee thing most likely applied only to Workers compensation insurance requirements. You gotta pay payroll taxes on all of em.

SNAPPER MAN
02-26-2010, 11:26 PM
Just pay cash....

lawns Etc
02-26-2010, 11:35 PM
Just pay cash....

Pay check and give em a 1099 at end of year
Posted via Mobile Device

N.TX
02-27-2010, 03:18 PM
Ya go through a payroll service or a temp service and it will save you a bunch of headaches.

topsites
02-27-2010, 03:38 PM
Pay check and give em a 1099 at end of year
Posted via Mobile Device

Correct, you want to be able to deduct employee labor expense.

yardworks, inc.
02-27-2010, 07:23 PM
These people are employees not subcontractors. You cannot 1099 employees. If they are a employees you have to give them a W2, take out payroll taxes, pay for workers comp., and the list goes on. You are asking for trouble one day if you don't.

360ci
02-27-2010, 08:54 PM
Paying cash is the old way of doing things. Ultimately, you still pay taxes on that 'cash' you give your employee. By deducting taxes and such regularly, you can write off that amount as an expense, which is less than paying full tax on it when you claim it as income. At least the math works out for those who live in Ontario. I used to pay cash for overtime, and standard payroll, but I wasn't saving anything by it, just giving myself more work in the long run.

brookline
03-19-2010, 10:50 PM
can you have employees as a sole proprietor or DBA?

FourTrees
03-19-2010, 10:53 PM
can you have employees as a sole proprietor or DBA?

Yes, just do it legally.:usflag:

bigw
03-19-2010, 10:55 PM
can you have employees as a sole proprietor or DBA?

Sure you can and i do all my own payroll and its very simple once you have all the correct deductions or formulas. My accountant set it up for me and i can do a check in about 2 minutes with all proper deductions.