I have an employee cost question....

Discussion in 'Business Operations' started by Jon99, Apr 25, 2004.

  1. Jon99

    Jon99 LawnSite Senior Member
    Posts: 375

    Did my first full week of mowing, took me about 55 hours to do everything last week.. I also have bid on a few residentials at the end of last week that I haven't heard back from and have two more to bid tommorrow...

    So I am thinking about trying to find a little help, perhaps a high school kid, to work a day or two a week... If I hire someone legit and give him $8/hour, what are the taxes I pay??? And what can I expect to pay for workers comp???
     
  2. pjslawncare/landscap

    pjslawncare/landscap LawnSite Bronze Member
    Posts: 1,410

    You with hold taxes from his pay. We use quickbooks online payroll to calculate ($60 = a year fee for this service). We pay about $1,550 a year for WC.
    Hope that helps
     
  3. Jon99

    Jon99 LawnSite Senior Member
    Posts: 375

    Is WC insurance cost based on total employee hours worked????
     
  4. Columbia Turf

    Columbia Turf LawnSite Member
    Posts: 99

    Workmans comp is based on total dollars paid in payroll. So much per thoudand dollars in payroll. I would assume there would be a min.
     
  5. meets1

    meets1 LawnSite Gold Member
    Posts: 3,787

    Here in Ia, I don't have a min. We pay everyone the same / hour but mostly high school kids that come and go. I have a hard time keeping someone the entire summer due to vacations, sports camps, try out for fall sports. Anyhow - my WC is based strictly on what I paid out in wages.
     
  6. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    your price for workers comp will probably be between $6.00 to $9.00 per $100 of payroll.
     
  7. GrassBustersLawn

    GrassBustersLawn LawnSite Senior Member
    Posts: 983

    Work Comp is based on PAYROLL. If you are a CORP yours would count. If you are a SOLE PROP. you can "opt out" for you. Usually "MINIMUM PREMIUM" runs around $750 a year. This gives you up to about $17k in payroll before you have to start paying more.

    Taxes are another story. First, WHAT A PITA - all the record keeping & filing. You have to hold out of employee's check, (7.65%) plus your company has to match the 7.65%. Then there is State paperwork....etc. Get QUICKBOOKS, it makes it easier, but it is still a MAJOR PITA. HOWEVER, it is a hurdle in growing that you will have to surmount at some point! (Got any GOOD FRIENDS that are ACCOUNTANTS that you can TRADE OUT work?)

    Mike
     
  8. matthew horner

    matthew horner LawnSite Senior Member
    Posts: 696

    in north carolina, wc is not required as long as you have less than 3 employees.
     
  9. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    you are serious, wc is not required?
     
  10. Runner

    Runner LawnSite Fanatic
    Posts: 13,494

    I don't know. There are alot of people who believe that to be true here in Michigan, too, but that's not true here.
    Jon99, One of the best things you could do is look into a payroll service. They will do all this for you, and for what the service costs, it more than pays for itself with all the time it will take you to do all of this.
     

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