Need info

Discussion in 'Starting a Lawn Care Business' started by StBalor, Mar 14, 2006.

  1. StBalor

    StBalor LawnSite Senior Member
    Posts: 798

    I am looking into a payroll service. I did not even know they exsisted until a few days ago. What are some questions i might ask them and how much can i expect to pay for this service?
    Also, i am looking into insurance. what kind do i need and how much?
    workmanscomp, i am looking to hire 2 employees. just a ball park figure how much do you all spend on these services?
    when i call about these things i would like to know what kind of questions to ask. right now i am doing all residential. but that could change anytime.
     
  2. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    For $75 a month I call in the time and they write the check, Mail it to the guy and pay monthly Taxes right out of my account. They Email me with the payroll records so I can enter them in Quick books. They do have an option of me paying the taxes but for the little less money it is worth it to me not to.
    You should have Libility insurance with around 1000000 in coverage. Should be under 1000 a year.
    My workmans comp is 3.8%

    Just call and tell them what you are doing and they will produce a plan that will work for you. Call 2-3 of each service and get est.

    By the way the payroll was the best move I ever made, I would spend an hour a week on it and now NOTHING!!:)
     
  3. gce_ent

    gce_ent LawnSite Member
    from Texas
    Posts: 93

    I have used Wells Fargo for my other companies and with an average of 9 employees on at any given time. The cost was $36 a month and it included an overnight package with check stubs every Friday and complete tax service. Pretty simple to deal with them and at the end of the year they handle all of the tax hassle.

    Also for insurance I would get the standard 1 mil General Liability and then put your work trucks under your personal policy which is extremely cheaper!!! I once had 6 trucks under a commercial policy and was paying 6k monthly.

    Oh yeah and I would 1099 your employees... I know there are rules to being 1099 but you can be creative and get around them.
     
  4. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535


    6K a month:dizzy: :dizzy: WOW!!

    If you 1099 you really don't need payroll as there are no taxes. But than they need their own tools and equipment and maybe trucks. My construction guys are all 1099 and one landscape install guy
     
  5. gce_ent

    gce_ent LawnSite Member
    from Texas
    Posts: 93


    Yeah they are 4 Kenworth T800 trucks stretched and outfitted with 52 CYD dumping boxes and working out of state! That my friend is a recipe for a 6k a month insurance bill! I do not recommend it unless what you are doing can pay for it :)

    Also most insurances, that I am familiar with, require an officer to be present in the company and most companies are formed to provide health insurance at a lower rate with all the goodies... well at least mine do and it means I have to have at least 2 employees and one would have to be covered under WC. However, he is an officer that plays golf all day so his factor is very very low. Oh yeah and I am telling you this becuase I had payroll for just him cause I did not want to have to write him a check every Friday.
     
  6. prostriper

    prostriper LawnSite Senior Member
    Posts: 336

    I'm not sure on the payroll services it is nothing I have ever looked into. But on the liabillity end, you want at least 1.5 times your net worth ( you and the company unless your incorperated) or up to what your clients require. The more liability insurance you have the less chance you have of loosing everything you own. Even though it is an expense it is a worthwile expense if the time comes that you do someone or something great harm. You must remember we are in litigous times where people will sue " because you broke their nail". I'm not saying everyone out there is like this but they are out there and you want to be protected in case of even the most minor instance to the most major. Lawncare can be a very dangerous occupation, I had a mower pick up a 6 pound rock out of thick grass and hit me 30 ft away, luckilly it wasn't a pedestrian.
     
  7. StBalor

    StBalor LawnSite Senior Member
    Posts: 798

    I called a payroll company and they told me 106.00 per month. From what i have been gathering this is a bit high. also i have been looking for them in my state. could i choose a payroll company from a different state?
     
  8. gce_ent

    gce_ent LawnSite Member
    from Texas
    Posts: 93

    My Wells Fargo Payroll is not actually Wells Fargo but a service they sub out to. I beleive they are out of Missouri.
     
  9. prostriper

    prostriper LawnSite Senior Member
    Posts: 336


    I'm not sure you could call other companies in other states and ask if they do payroll nation wide . You could also call around to local companies, not just LCO's and see if they use a payroll service, and who they use, and if they are happy with them.

    Pricing of a payroll service is only worth the time it saves you and how much you value your time. It's completely up to you but remember sometimes the less you pay the worse the service may be. Thats not always the case, which is why you would want to ask local companies around your area.
     

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