Hiring

Discussion in 'Business Operations' started by HB Lawn, Sep 19, 2005.

  1. HB Lawn

    HB Lawn LawnSite Member
    Posts: 199

    I have been running my business for three years now. It's been my daughter and I the whole time. Now she wants to go back to school, good for her, so I have to find her replacement. Is it better to hire someone as an "Employee" or a "Sub contractor"? What the main reason for view?
     
  2. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    Understand just what a "sub contractor" really is

    They have to use their own equip

    They call the shots .... as far as what to do and when to do it .... you can tell them your expectations or what the requirements of the job is ...but its their call on how its done

    If your in a situation of insurance & W/C they will have to show you proof of it ... otherwise you will be responsible fore any damage or injuries

    There is more too it than this ...but these are the big 3 ....most people believe that they can hire someone ... have em run round in your truck, use your stuff n you just 1099 em end of year .... sure you can do this ...but it is not legal in the eyes of uncle sam .... n if they get hurt or break something ..... tag your it
     
  3. Brianslawn

    Brianslawn LawnSite Silver Member
    Posts: 2,004

    employee you got payroll taxes, ss matching, workmans comp, w2.... im not too familiar with them all cause i dont handle any of that part of the biz.

    sub- i think you just give them a 10-99 and dont with hold any thing, but again thats one subject im not an expert at.

    most employees will probably cost you more than they make you. thats my experiences. have them sign an indemnity agreement. that way you can charge them parts and labor or replacement of anything they break. i make more $$$ off most employees that way than having them mow. i only got a couple right now that been with a while. the average person lasts one day and half dont even show up the first day.

    had an 18 yr old boy ready to start crying for his mommy his first and only day this summer. he claimed he had been trying to start his own mow biz and been doing a few yards. woman worker in the truck with us started laughing at him. he said at the end of the day he really learned what it was like to be big time and he would try and find something easier to do.
     
  4. Brianslawn

    Brianslawn LawnSite Silver Member
    Posts: 2,004

    good post fantasy

    just do what i did and go to an account and let them figure it all out for you.
     
  5. HB Lawn

    HB Lawn LawnSite Member
    Posts: 199

    Is there any links that would have this indemnity agreement on it? I'm very interested.
     
  6. Brianslawn

    Brianslawn LawnSite Silver Member
    Posts: 2,004

    i had a lawyer make it. ill find mine and post it later tonight
     
  7. BSME

    BSME LawnSite Senior Member
    from Midwest
    Posts: 829

    brian...
    why are you hiring employees if you are losing money doing so?
     
  8. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210

    The IRS has VERY strict laws about someone being a subcontractor.


    I'm going to go out on a limb and say that you can't do that. First, you are supplying all of the tools for this contractor. Second, you are dictating when/how the work should be done. Look it up, speak to your accountant.

    Another option would be to speak with an employment agency. Basically tell them how many guys/gals you need and when.
     
  9. HB Lawn

    HB Lawn LawnSite Member
    Posts: 199

  10. Brianslawn

    Brianslawn LawnSite Silver Member
    Posts: 2,004

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