Originally Posted by Kelly's Landscaping
So your solution to avoid paying high UI premiums is to pay the employees all winter when you have no work for them? Here's the problem with that. Top UI rate here is 6.9 the lowest rate here is 1.9 so the punishment for not having work in the winter and an additional 5% on my payroll. Now my partner and I do not pay on ourselves so that 5% is just on employees. The top guy makes about 30k the other one about 20k so 50k a year x 5% costs me additional $2500 so they can sit on there butts all winter. Now to avoid that Id need to pay them what 40 hours a week for 10-12 weeks each about an average of about 15 an hour here so 1200 a week or $12,000-$14,400 to avoid paying $2500.
That's the part that sucks yes were getting screwed but its cheaper to just pay the higher premium. Also that premium is currently about double what it would be if Obama wasn't in office and we had lower unemployment. When fewer are on it the rates are lower when your states been at 8% forever your rates reflect that.
I see a lot of southern and Texas guys talking about trying to work them year round must be nice. Here the season is about to end for us in 10 more days or so we will start getting ready for spring around the first week or so of march and those 10 weeks or so in-between I have nothing for work. Oh but you could do snow work yes we could and 2 years ago it was 2-3 storms a week the entire month of January and last year it was 4 storms the entire winter. I'm guessing there would be a lack of work there.
Exactly. I don't understand that people think its cheaper to keep them on. Thats just dumb or they suck at math.
The only reason I can think to try and find work for them to do during the winter is so they don't go find another a job. Which sadly, is what three of my four guys did this year. Hopefully they will still come to work for snow, I pay overtime for snow.
I would have to stash away $20,000 just to cover payroll during the winter. Yes I have year round accounts, but that keeps the lights on during the winter, not payroll. It'd be cheaper just to replace and retrain every employee each year.