How Do You Pay For Employee's?

Discussion in 'Business Operations' started by Matt .B, Dec 12, 2001.

  1. Matt .B

    Matt .B LawnSite Member
    Messages: 7

    I have a landscape business right now with 6 employee's... I have been paying by the job. So the faster they work the more money they make. It usually averages out to be around 12.50$ an hour for lawn mowing. And if i get a complaint from a customer they are sent back out to the account on there own time.(or atleast not getting paid for the trip) I was wondering is this a decent way to pay the employee's??? OR what works???
  2. How much do you have to send them back to correct jobs?

    How much are they generating a day?

    How is your customer retension?

    How much is your employee retension?

    Do they beat up the equipment going to fast?


    It can be a good way to pay but those factors mensioned are the biggest part of the equasion.
  3. smburgess

    smburgess LawnSite Senior Member
    Messages: 467

    A better way would be legally, either hourly or salaried.

    They could not in any way be classified as sub-contractors, since they're using your equipment and you're setting the price they're being paid, among other things.

    I'm not trying slap anyone around, an opinion was asked for, and I'm giving mine.
  4. plymouthvaliant73

    plymouthvaliant73 LawnSite Member
    Messages: 167

    That's right, this has huge potential to be a financial disaster for you.

    The revenooers can come after you for all the taxes; fica, medicaid, income taxes, everything. Federal, state, local.

    Plus interest and penalties.

    Plus back wages and triple damages for the wages you didn't pay when you sent them back on their own time.

    This is not professional.

    edited to add:

    Oh, yeah, and then there are the unemployment taxes and workmens comp premiums.

    and how about liability insurance? will your carrier deny payment because you're not running legal?

    Sorry, it's a downer but true.
  5. wolfpacklawn

    wolfpacklawn LawnSite Member
    Messages: 120

    smburgess and plymouthvalient73

    Where did Matt B. say that he was not taking out taxes, social security and medi etc.?

    Is it illegal to pay by % for a job? It sound like that is how he is doing it. He never said that he was 1099ing them.
  6. 2 man crew

    2 man crew LawnSite Senior Member
    Messages: 403

    An employer can pay what ever he or she wants as long as its meets the states min wage. At least that is in Minnesota. If the total pay for each week meets the states min wage its legal.
  7. No it is not. Best thing to do is check you labor laws.

    Same in Missouri.

    Also there is another thread going on the same subject.
  8. HBFOXJr

    HBFOXJr LawnSite Bronze Member
    Messages: 1,712

    Everybody is being athletic here jumping to conclusions and flying off the handle.

    No, you are not illegal and I don't see a problem with %. But there are questions you haven't answered that are needed for others to pass opinions or help.

    Read the state and federal labor laws, but I think??? that if they work more than 40 hours you have to have someway of calulating wages backwards to make sure they are getting time & a half for the OT.

    Meaning this, if you said their wage was $8/hr, $12 for OT and they averaged $12.50 in earnings all the time, you'd be clear and nobody could hassle you.

    If the wage was $10/hr plus OT, a 50 hr week makes the average wage about $11/hr for all 50 hrs and your still ok.

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