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Salary Cap

Yardworks

LawnSite Member
I was wondering if anyone with employees could tell me what they would pay an employee full time, lawn care/snowremoval, on a salary bases. Also what it really cost you after work.comp.,insurance,social security,unemployment? If anyone has an arrangement like this, what do you do in the winter between storms? Does this person get some extra time off, or do you just find things to keep busy.
 

1st impressions

LawnSite Member
Location
Chicago,IL
I have one full-time employee that works year round with
me. In the summer he is my supervisor on one of the crews.
In the winter we work together doing snow removal. I pay
him $25,000 A year. That comes out to approximately $480
a week or $12 per hour. We factor in a 20% load on payroll
to cover all taxes/insurance/ etc. By the way, he receives
no overtime because of the downtime in winter. He gets 2
weeks of vacation a year plus an extra 2-3 weeks off in
winter when snow is not falling and we have downtime.
It may seem like a lot of money but it sure beats having
to find a new foreman year after year. Plus you need a
dedicated employee at 1:00a.m. when the snow ends and it is time to plow.
 

jaclawn

LawnSite Senior Member
Location
South West PA
I remember reading that the IRS has some funky rules regarding time off in exchange for overtime worked. I am sure that they have some very specific guidelines for you to follow when doing this sort of thing.
 

thelawnguy

LawnSite Silver Member
Location
Central CT
You do not, nor are you required to, pay overtime to a salaried employee.
 

iowastorm

LawnSite Senior Member
Location
Iowa
We put one of our guys on salary, after he was averaging 70 hrs. per week this past December; that's 15/hr. at regular pay and 22.50 for 30 hrs. of overtime. His hours, along with the other hourlies were killing our payroll. Now, as a salaried employee, we can work him w/out paying him overtime and will help him out when we're not pushing snow. For example, this week he's only working about 10 hrs. so in the long term, his pay will even out.
 

John Allin

LawnSite Bronze Member
Location
Erie, PA
lawnguy...

You get audited by the Feds, you're gonna have a problem if that is your stance.

Been there, done that.

There are some VERY specific rules about what is a salaried exempt employee and what is not.

Yardworks...

If you want to email me direct, or call me - we can talk about it (we have 45 employees and an HR department, plus my HR person is Chairman of the local Employer Advisory Council that advises/oversees the local unemployment office). I'm not going to get into it on this forum. WAYYYY too touchy a subject for discussion in a forum like this. You don't know who's "observing" here.
 

neighborguy

LawnSite Member
I was an employee on an arrangement similar to this. Got screwed big time. As soon as I went salary, there was lots of extra time that I was suddenly needed for that I had never done in the past. As an employer I would shoot for this type of arrangement, but as an employee you are better off staying on as hourly.
 

thelawnguy

LawnSite Silver Member
Location
Central CT
Originally posted by thelawnguy
You do not, nor are you required to, pay overtime to a salaried employee.
Then John writes, "You get audited by the Feds, you're gonna have a problem if that is your stance.

Been there, done that.

There are some VERY specific rules about what is a salaried exempt employee and what is not."


Salaried is just that.

"Been there done that."

Evidently you got caught playing wage games with employees who were not (or should not have been) salaried.

Set up your employee correctly (see an accountant and dont try to be creative; ticked off employees will do you in) on a weekly/monthly salary and you shall have no problems.

neighborguy very few things can be all things to all people. Sounds like you had an employer who took advantage of the situation.
 

MJ

LawnSite Senior Member
Location
central Maine
I agree with John, way too touchy of a subject. The IRS isn't even always sure what it wants to consider an exempt employee.

Mick
 
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