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Employees - How much do they really cost?

Discussion in 'Business Operations' started by IN2MOWN, May 13, 2009.

  1. IN2MOWN

    IN2MOWN LawnSite Platinum Member
    Messages: 4,993

    Im finally going to break down and hire someone. Solo going on 9 years now and I just cant do it myself anymore.

    Im going to start out around $8.00 per hour. I think thats pretty fair considering all he will be doing is trimming and blowing.

    How much is that really going to cost me after workmans comp and all the other great stuff I have to pay into.
  2. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Messages: 7,670

    A good "guesstimate" is 120-125% of their wage.
  3. IN2MOWN

    IN2MOWN LawnSite Platinum Member
    Messages: 4,993


    Thats like a punch in the stomach...
  4. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Messages: 7,670

    Right off the bat you've got 7.65% matching FICA + unemployment +W/C. After that you'll have to prepare/file quarterly payroll tax returns, deposits of withheld/employer matching tax and issue w-2s. If you take the time to do some of the bookkeeping yourself, you will save some money.
  5. IN2MOWN

    IN2MOWN LawnSite Platinum Member
    Messages: 4,993

    Is this all something that I would use an accountant for or a payroll company?

    Also cant Quick Books do it? I used to use QB but only for invoicing. If I remember correctly I could enter the state I live in and it would automatically update with all the new tax laws and stuff.
  6. dKoester

    dKoester LawnSite Gold Member
    Messages: 3,346

    I have employees and go through quickbooks for payroll. Its easy once you get all the accounts set up. Its a breeze. Its your first major step in growing your company. Congratualations
  7. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    this may or may NOT be true, Check with your state for the rules.

    any co. under 5 employees in TEXAS is NOT required to carrie WC.
  8. PTP

    PTP LawnSite Bronze Member
    from Tulsa
    Messages: 1,398

    Do you really expect to get competent work for $8 per hour? If you can, then the sky is the limit for you. I have my reservations though.

    Today, my helper made $18 per hour. He gets paid by the job but that is what it worked out to. He does the edging, trimming and blowing. We mow 1/4 acre lots and we averaged 3 per hour all day today.

    I think that it is better to pay well and to have really good quality help than to hire someone for cheap and go crazy when they act like a neanderthal. (picture of a guy pointing the blower at the trees and watching the wind blow.)
  9. grasshopperslawn

    grasshopperslawn LawnSite Senior Member
    Messages: 293

    I use ADP for payroll services. I let them handle all the taxes and filings with the Irs. I figure it was 33% additional with all the fees, taxes and Workman"s comp. so add 33% to the weekly earnings and that should be close.
  10. IN2MOWN

    IN2MOWN LawnSite Platinum Member
    Messages: 4,993

    Yes I expect that.

    Running a trimmer and blower does not merit $18.00 per hour.

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