Paying Employees

Discussion in 'Lawn Mowing' started by The LawnSmith, Nov 1, 2004.

  1. The LawnSmith

    The LawnSmith LawnSite Member
    Posts: 67

    I am pondering the idea of hiring an employee or two next year. I am currently a solo operation, except I have my brother-n-law help on occasion.
    I pay him anywhere from 8-10 dollars an hour, but only for the actual hours worked. (Doesn't include driving time, lunch, etc). Realizing that I am a small operation, is this feasable? Are there any other businesses that have one or two employees, and how do you pay them? Should I pay less per hour and pay them for the full time they are gone?

  2. lawnwizards

    lawnwizards LawnSite Silver Member
    Posts: 2,434

    we have 3 employess (all high schoolers) we pay them 6, 6, and 6.50..... this includes drive time... be sure and plan a tight route so you don't have to pay so much window time.... i'd say pay them less hourly and include the window time... lunch is their own time so i wouldn't pay them for that.... include a couple of perks every now and then and they wont bit$h over the pay scale...
  3. The LawnSmith

    The LawnSmith LawnSite Member
    Posts: 67

    Thanks Lawnwizard,

    I have a couple teenagers that want to work, and I think your idea of paying for the entire time spent away will work out at the 6 to 6.50 scale. I agree that the route is important to make money for all. Thanks for responding so quick.

  4. SodKing

    SodKing LawnSite Bronze Member
    Posts: 1,648

    "Should I pay less per hour and pay them for the full time they are gone?"

    What do you mean by this? If you have an employee, even your brother in law, you must pay for all time worked, that includes windshield time. You must also pay all applicable state and federal taxes, unemployment compensation, and any other applicable fees. I suggest you speak with your accountant.
  5. lawnwizards

    lawnwizards LawnSite Silver Member
    Posts: 2,434

    ahh, sodking..... the glory of the 1099... you keep track of what they made, then you send it to them and they pay their own taxes. and most new guys don't have accountants...

  6. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    There are rules for 1099's though. I see your point about the accountant though, seems like everyones awnser.
  7. GreenMonster

    GreenMonster LawnSite Silver Member
    from NH
    Posts: 2,702

    my accountant got me back much more $$$$ (legally) than I could have gotten on my own.
  8. Precision

    Precision LawnSite Silver Member
    Posts: 2,995

    Most people who don't value there money don't have accountants.
  9. SodKing

    SodKing LawnSite Bronze Member
    Posts: 1,648

    Two people you see before entering into business, your lawyer and your accountant. Even with a 1099 you still need to pay unemployment, workers comp, state and local taxes, and insurance. The 1099 is only a federal form which does not cover these other taxes, fees, and services.
  10. kickin sum grass

    kickin sum grass LawnSite Senior Member
    Posts: 628

    a 1099 is basically for a subcontractor in this situation. If you provide the tools, transportation, tell them when they start and stop, are their boss, and a few other things than they are employees, you must pay them as such. If you ever get audited you will find out this the hard way. The IRS will rip you apart. My buddy did this with his employees and almost lost everything after the IRS got finished with him. I also confirmed this with my accountant. Pay an employee the right way. All time worked, and pay them the correct amoount. Would you want to do this for 6 bucks, unless you are in high school I think not. I paid my highschool kids 8 bucks starting out no experience.
    Look into the rules of a 1099 before you get yourself in trouble.

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