PDA

View Full Version : How would you pay your helper?


Kleen Kutz
06-04-2011, 12:29 AM
Hey guys! I'm wondering if you owned every piece of equipment that you have. And I now have a hepler, how would you pay your helper? Would you pay per yard or by hour? If paid by yard how much per yard, or how much an hour? Thanks in advance!!!:cool2:

Dr.NewEarth
06-04-2011, 12:42 AM
I think you should look into what your labour laws are for your state.
Normally you pay a person by the hour, they have a set amount of hours
they can work per day and per week and you have to do a proper payroll with
deductions and all of that.

Down there, I would guess 9 bucks an hour to start. Too Much? This is hard work and
you want to keep employees happy, so you can be happy.

jwsland
06-04-2011, 02:16 AM
How? I pay my helper sometimes helpers fair and on time every Friday. :)

Kleen Kutz
06-04-2011, 03:19 PM
ok great info!!! but where i would go or look up the type of info at? cause i normally just pay my helper out of my earnings for the day instead of at the end of the week. i always get paid after i've done each yard.

h2oskier
06-04-2011, 03:28 PM
ok great info!!! but where i would go or look up the type of info at? cause i normally just pay my helper out of my earnings for the day instead of at the end of the week. i always get paid after i've done each yard.

Stick to that method just make sure they fill out a 1099 and file it at tax time.

headz77
06-04-2011, 04:28 PM
Stick to that method just make sure they fill out a 1099 and file it at tax time.

You need to determine if this worker is an independent contractor or employee and then follow the irs's rules accordingly. This (http://www.irs.gov/businesses/small/article/0,,id=98862,00.html) should get you started.

MowHouston
06-04-2011, 06:45 PM
Wrong on the 1099.

Your helper isnt using his own equipment, setting his own schedule, making his own routes, or using his on materials. He is your employee. Don't get yourself in trouble and learn the laws before you give advice.

TTM42
06-05-2011, 01:26 AM
MowHouston was exactly right, if you use his equipment and if he tells you what to do and where to go, you are an employee and not an independent contractor, dont get 1099'd and take the hit on self-employment tax, I found that out the hard way.

h2oskier
06-05-2011, 02:13 AM
Wrong on the 1099.

Your helper isnt using his own equipment, setting his own schedule, making his own routes, or using his on materials. He is your employee. Don't get yourself in trouble and learn the laws before you give advice.

Check the laws on piece work then get back to me with your responce then.

Richard Martin
06-05-2011, 05:33 AM
Check the laws on piece work then get back to me with your responce then.

What does piecework have to do with lawncare?

"Under the Fair Labor Standards Act (FLSA), industrial homework (also called "piecework") means the production by any covered person in a home, apartment, or room in a residential establishment, of goods for an employer who permits or authorizes such production, regardless of the source (whether obtained from an employer or elsewhere) of the materials used by the homeworker in producing these items."

http://www.dol.gov/dol/topic/wages/industrialhomework.htm

h2oskier
06-05-2011, 05:55 AM
What does piecework have to do with lawncare?

"Under the Fair Labor Standards Act (FLSA), industrial homework (also called "piecework") means the production by any covered person in a home, apartment, or room in a residential establishment, of goods for an employer who permits or authorizes such production, regardless of the source (whether obtained from an employer or elsewhere) of the materials used by the homeworker in producing these items."

http://www.dol.gov/dol/topic/wages/industrialhomework.htm

You got the right answer. The op is paying his quote on quote employee piecework according to what he said. That means if he wants to avoid paying taxes on his quote on quote employee, he files a 1099 as if he is subing out the work. Seems the way most would interpret it.

h2oskier
06-05-2011, 06:05 AM
If you read the original posters way he is paying his helper, you would see he is paying a percentage of what he makes on each job. This is why i said to have his helper fill out a 1099 and file it with the IRS. Under the laws of piecework as Richard was so nice to show us, we could avoid being a actual employer, and remain a solo operation by subing out the remaining work. Thus not having to pay workmans comp, the helpers federal income tax. Now i do understand where you guys are going to go with this, but as he is paying his help now, the help would be considered a independent contractor.

Richard Martin
06-05-2011, 06:43 AM
Thus not having to pay workmans comp, the helpers federal income tax. Now i do understand where you guys are going to go with this, but as he is paying his help now, the help would be considered a independent contractor.

In order to qualify to do piece work the "non-employee" would have to first qualify as a sub contractor. It is not determined by the method of compensation. It is determined by the means by which the work is done. If the "non-employee" is using your tools, rides in your truck, works under your supervision and works to your schedule then he most certainly is an employee. You may still pay them piece work style as long as they ultimately earn at least minimum wage ($7.25 fed, some states have higher minimums) for the first 40 hours and time and a half for every hour after 40. You must keep records. You are still required to deduct taxes and have workers comp if your state requires it.

You see, all of this revolves around whether the worker is an independent worker or not. If he shows up in his own truck, works with his own trimmers and mowers, buys his own gas, provides his own commercial liability insurance, works when he wants and does the work in the order that he sees fit then he is an independent sub contractor. If you control this person, provide his tools, fuel, insurance, set his schedule and generally supervise him then he is an employee.

MOturkey
06-05-2011, 09:01 AM
In order to qualify to do piece work the "non-employee" would have to first qualify as a sub contractor. It is not determined by the method of compensation. It is determined by the means by which the work is done. If the "non-employee" is using your tools, rides in your truck, works under your supervision and works to your schedule then he most certainly is an employee. You may still pay them piece work style as long as they ultimately earn at least minimum wage ($7.25 fed, some states have higher minimums) for the first 40 hours and time and a half for every hour after 40. You must keep records. You are still required to deduct taxes and have workers comp if your state requires it.

You see, all of this revolves around whether the worker is an independent worker or not. If he shows up in his own truck, works with his own trimmers and mowers, buys his own gas, provides his own commercial liability insurance, works when he wants and does the work in the order that he sees fit then he is an independent sub contractor. If you control this person, provide his tools, fuel, insurance, set his schedule and generally supervise him then he is an employee.

That make total sense.

MowHouston
06-05-2011, 09:15 AM
This is a good article for you guys preaching 1099 or thinking about 1099 to read.

From the article:

...you should be aware that the IRS does not look specifically at any one factor, but one factor can be enough to cause the IRS to determine that a worker is an employee.


http://biztaxlaw.about.com/od/independentcontractors/f/ic20factortest.htm

Richard Martin
06-05-2011, 09:20 AM
Here is a good example of a real sub contractor:

XYZ Property Management oversees 50 foreclosed houses in Greenville for Bank Of America. Part of their responsibilities is to make sure the grass at these properties doesn't get out of control. Perhaps a once a month cutting is all that is required. Well XYZ Property Management contacts me and offers to pay me $25 per cut to cut these properties once a month. I have to take a before and after pic. I show up with my own truck, my mowers, my trimmers etc. and do what's required once a month. I take the before and after pics and then 3 months later XYZ Property Management finally sends me my check. In January of the next year XYZ sends me a 1099 for the work that I did the year before. That is a legal 1099 arrangement.

Classic Cuts Lawn Service
06-09-2011, 09:03 AM
with trident layers gum =D