I have an employee cost question....

Jon99

LawnSite Senior Member
Location
Illinois
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???
 
OP
J

Jon99

LawnSite Senior Member
Location
Illinois
Is WC insurance cost based on total employee hours worked????
 

meets1

LawnSite Gold Member
Location
NW, Iowa
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.
 

tiedeman

LawnSite Fanatic
Location
earth
your price for workers comp will probably be between $6.00 to $9.00 per $100 of payroll.
 

GrassBustersLawn

LawnSite Senior Member
Location
Indianapolis, IN
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
 

tiedeman

LawnSite Fanatic
Location
earth
you are serious, wc is not required?
 

Runner

LawnSite Fanatic
Location
Flint, Michigan
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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