New possibilities....

[Kellie Hiler]

The other day I had a guy help me with a big job, he did great and I was really excited to have spur of the moment help. Today, I had the chance to sit down with him and talk more about the future and I asked to see his DL. He said his wife who is divorcing him took all of his ID and cards and threw him out and the only way to get it back is with a civil assist and he refuses to traumatize his kids.
My friend who hooked me up with him said that he is a solid guy and he has known him for a long time, but there is a lot of drama and dysfunction. At this point I do not need that in my life so I think I am going to have to pass on this guy.
The good news is, I've got a 20 year old guy lined up to help me on Monday for the give back job, and he sounds very smart and personable. He has sales experience and has said he may even have some potential businesses interested in regular cleanings.
Obviously it is too early but I got a really good first impression of him. He is looking for a good job that he can stick with.
If he works out would I be better off paying him hourly or by salary? With his sales experience I am thinking that when there is no work he could be doing some sales calls, cold calls etc. equipment maintenance as well.
I am really nervous about this, because we always used to just 1099 guys and pay them percentage of each job. This time I want to do it the right way and I know this means I've got to get Workers Comp, but what else is involved?
As it stands right at the moment, I am not yet busy enough to warrant paying someone a salary and going through the hoops but at the same time, I need to make sure I do everything legit, and I want to take care of whoever I hire so they will stay and be happy.
Help!!!! I've never done this before!

 

[Cleanworks]

A decent hourly wage is a good way to start. If he is doing on the job sales for you (upsells) an additional commission (10-20%). If he does outside sales (cold calls) maybe a combination of wage and commission. Make you have workers comp. and check to see if you can have him bonded through your insurance company. Do a time sheet/commission report and give it to your accountant or learn to do it yourself. Make sure of the drivers license. I hope he works out for you.

 

[BIG WOOD]

If you're a very small business like mine, I've learned that, instead of hiring one full time person, and having to pay workman's comp isn't as good as hiring several part time people. Look for people who are already employed and just want some extra work on the side one or two days/week. Just a thought

 

[hogjowl]

I never realized paying straight commission was wrong.

 

[steve_64]

I was paying 10 percent to helpers and the same for any new work they bring in.

I had to have workmans comp to bring helpers onto some of my worksites. I may drop that now that its mostly Genny working with me.

 

[Kellie Hiler]

If you're a very small business like mine, I've learned that, instead of hiring one full time person, and having to pay workman's comp isn't as good as hiring several part time people. Look for people who are already employed and just want some extra work on the side one or two days/week. Just a thought

That is how we used to do it and we would pay them a percentage of the job, and at the end of the year we would 1099 them.
I have been told the good ole IRS is getting tougher in regards to that method? How do you handle paying them? And what about insurance, if something were to happen to one of them on the job? I have literally never had anything happen in the past but you never know, there is always that one guy lol.....

 

[Kellie Hiler]

I was paying 10 percent to helpers and the same for any new work they bring in.

I had to have workmans comp to bring helpers onto some of my worksites. I may drop that now that its mostly Genny working with me.

So, if you don't have workers comp and something happens to a helper, what happens? I just want to make sure all my bases are covered.

 

[steve_64]

They could sue who im working for I guess even if they are there with me. Or the worker is screwed and has to take care of themselves.

Im learning as i go too.

 

[Kellie Hiler]

See, that is what I want to avoid. I would love to find one or two guys that I can take care of and keep happy enough that they won't want to look for other work and I won't have to worry about the scenarios above.
Preferably one full timer and a part timer.

 

[Spurlington]

I asked to see his DL. He said his wife who is divorcing him took all of his ID and cards and threw him out and the only way to get it back is with a civil assist and he refuses to traumatize his kids.

Something fishy there .. hes going to be jobless without ID anywhere he goes. Im thinking he could exchange ID for the ability to pay child support with the wife.

If you're a very small business like mine, I've learned that, instead of hiring one full time person, and having to pay workman's comp isn't as good as hiring several part time people. Look for people who are already employed and just want some extra work on the side one or two days/week. Just a thought

Im reading this as you dont need workmans comp if all you have is part time employees .. dosent seem right. Are you saying rates are lower per person when you have multiple part timers? We have to pay for all employees .. part or full time.

See, that is what I want to avoid. I would love to find one or two guys that I can take care of and keep happy enough that they won't want to look for other work and I won't have to worry about the scenarios above.
Preferably one full timer and a part timer.

Keep in mind - giving all the goodies wont promise a good helper. Make em work for it. I had one guy years and years ago I offered almost twice min wage plus commission plus a bonus of doing one side job per week for family or friends only and he was not a good person !! The ones that worked out the best were the ones we gave the least amount to. They had to work hard for the extras.

 

[Kellie Hiler]

Something fishy there .. hes going to be jobless without ID anywhere he goes. Im thinking he could exchange ID for the ability to pay child support with the wife.

I absolutely agree. He is driving his car without his license as well, and who knows, maybe he doesn't even have one. It is all very fishy to me.

Im reading this as you dont need workmans comp if all you have is part time employees .. dosent seem right.

Agree there too.....If something were to happen I would be up shits creek without a paddle!

The ones that worked out the best were the ones we gave the least amount to. They had to work hard for the extras.

Yes, I wouldn't jump head first and offer him the gold until he has proven himself and earned it, but I also believe that it is good to give them something to strive for.

 

[Cleanworks]

Check your state's laws carefully about your liability. I have some ex relatives in Colorado, they're doctors and have a clinic. They hired an illegal immigrant just to help clean up because they felt sorry for him. First week on the job he somehow injures himself (real or fake? Who knows) and sues them. Completely their fault for being nice people and trying to help some one. Do it by the book, it' cheaper in the long run

 

[BIG WOOD]

Sorry for the misunderstanding. In my state, if you have under 2 or 3 employees (I can't remember the exact number) you don't have to have workman's comp. If I hire anyone, I w2 them

 

[Desk Jockey]

Accidents can and do happen. I have one guy on work computer since early Fall. He turned his ankle stepping on a vacuum hose.

Needed surgery and is still rehabbing it. We don't get many claims, most years we are below average experience rating. When we do get them, it's expensive.

 

[rick imby]

Sorry Matt---I cannot believe that is true in your state...

If a worker is hurt on the job you are responsible for getting him fixed up and his lost wages and his court costs and your court costs when he sues you. This can be brutally expensive.

Another easy way to work into it is to hire part timers is through temp agencies. It will cost you 5 to 7 dollars an hour more but they will have a work comp policy that covers them on your jobs.

You can also have someone you want to hire and send them to the temp agency, they can hire them for you and you pay the extra fees.
This can differ from state to state also.

 

[GeneMiller]

Here you can get a new liscense online. It's easy if you know the info. He can also go to dmv and get one.

As far as pay I start everyone at 12.50 an hour. After they prove they are going to stay I put them on salary. No workers comp needed here with 2 employees but he is on my insurance. Be careful with 1099's the irs has a specific set of guidelines you have to meet. If he doesn't pay at the end of the year they can come to you for the taxes.

 

[rick imby]

Matt if you W2 someone you have to hold back money for SS, State tax, fed tax and pay all the payments to the government. If you 10-99 them you are claiming they were an unincorporated business that you paid.

 

[Kellie Hiler]

Lol........a very close female friend of mine who has been in the industry for a long time working at a supply house and then a flood restoration company just quit her job today. We worked together in the past when I was doing house cleaning to supplement our slow winters.
She is going to work with me!!!!! We work great together and she is a good worker. She is even going to help me on Monday for free on the carpet cleaners giving back day! WooHoo!!

 

[BIG WOOD]

Sorry Matt---I cannot believe that is true in your state...

If a worker is hurt on the job you are responsible for getting him fixed up and his lost wages and his court costs and your court costs when he sues you. This can be brutally expensive.

Another easy way to work into it is to hire part timers is through temp agencies. It will cost you 5 to 7 dollars an hour more but they will have a work comp policy that covers them on your jobs.

You can also have someone you want to hire and send them to the temp agency, they can hire them for you and you pay the extra fees.
This can differ from state to state also.

Hey Rick, by law in Georgia , I don't have to have WC if im under those few employees. but you're right...if someone has a good enough lawyer, and gets hurt, he can ruin my business if i don't have WC insurance.

 

[mirf]

That is great news Kelli. Hope it works out.

 

[rwcarpet]

I don't get it here. Most cleaners/owners/operators here claim they are making a killing in this business. Big jobs, big bucks. Now you think you can squeak by with out paying workers comp? Are you crazy? It's all good if you are a lone operator. But as soon as you hire someone, you assume that they won't get hurt? You better get with your state WC and get covered.....tomorrow! When I bought my screenprint business 10 years ago, I immediately put my new full time employee on my WC. In 2009, after laying her off because of the slow economy, she filed a claim after slipping off a footstool in the shop. Had I not had WC, I'd be up that shit creek, with a hole in the canoe. WC shields you from further claims and lawsuits against you from said employee, forever. She ended up having multiple surgeries to repair her damaged knee. I also had a WC 3rd party administrator, which lowered my rates, and they did all the leg work for me.....no charge. They attended and represented me at all claimants/WC meetings. WC determined after a few years that she could not be further rehabilitated and ended her claim. She couldn't come after me because of the WC system.

Do yourself a favor and get covered as soon as possible! Any and all payments into the WC system are a full business deduction, an expense write off for your business.

 

[rick imby]

Hey Rick, by law in Georgia , I don't have to have WC if im under those few employees. but you're right...if someone has a good enough lawyer, and gets hurt, he can ruin my business if i don't have WC insurance.

In this state (Montana) they will ruin your business if they find out you have even one part time employee and no WC policy. Big fines and penalties.

 

[rick imby]

Kelly,

My experience hiring employees is you will need to hire 3 to get one keeper. Sometimes everything seems perfect at first but things change. Don't put too much pressure on yourself to believe that this is "the one" employee you need. Sometimes you get 3 keepers in a row and sometimes you get 6 catch then releasers in a row.

Good luck.

One of my favorite quotes from my deceased father.

The employees you fire will not bother you near as much as the employees you should have fired.....

 

[Kellie Hiler]

I agree Rick, I've got two people lined up, one being my friend and the other a young guy, plus another one on standby. So I will see how it plays out.

 

[Travis Sonderegger]

Question. I didn't read everyone's responses so if this was already talked about I'm sorry. Does anyone hire their employees through a temporary agency like Elwood staffing? You pay then a fixed amount and they worry about workers comp and all that.

 

[steve_64]

I tried a temp agency. They couldnt find me anyone I would hire.

Im sure another agency might have done better but I found someone on my own.

Temp agencies want a lot of info from ya that I wasnt comfortable with. I did it but i didnt like it.

 

[Brian H]

A long, long time ago I tried a few different temp agencies...

I am sure there are many great workers who at one time or another have worked for a temp agency however, I never, not even once, got a decent worker from them. My feeling though is there's a reason that type of person works for a temp agency.

 

[Kellie Hiler]

Brian, that is how I felt about it after thinking about it for a while. I was initially going to try it but thought better of it.
I'm all for giving people second chances but not in my customers homes.

 

[Spurlington]

Some reason Im thinking a temp agency around here wont give you someone for in home use. Some liability issue.

 

[Cleanworks]

I have used temp agencies in the past and have had no problems. They pay all the taxes and wc. If they get a negative report on an employee, that person goes to the bottom of the pile again or so I'm told.