Hiring Employee(s) help.

Tex Star Detail

Tex Star Detail

Formerly TexasTB
I am at the point where I am in a hard place.
Book 2.5 weeks solid. I cannot stand it anymore. I have a $700+ a month job I cannot take because I am too full.

It is a good thing, but a bad thing at the same time.
Not sure if I want to hire a part timer right now, or just hire day labor for a couple of weeks to see how it goes. Then if it stays this busy, take the day laborer on part time.

The if I do hire part time, what are the steps I need to take? As long as they do not work 40 hours a week, I will not need insurance, workmans comp, etc,.... correct?
Can I have them withhold their own taxes?
Pay under the table for now?
Help me out! I am a newb to this sort of thing, but am growing out of control right now!
:bow :bow
 
TexasTB said:
I am at the point where I am in a hard place.
Book 2.5 weeks solid. I cannot stand it anymore. I have a $700+ a month job I cannot take because I am too full.

It is a good thing, but a bad thing at the same time.
Not sure if I want to hire a part timer right now, or just hire day labor for a couple of weeks to see how it goes. Then if it stays this busy, take the day laborer on part time.

The if I do hire part time, what are the steps I need to take? As long as they do not work 40 hours a week, I will not need insurance, workmans comp, etc,.... correct?
Can I have them withhold their own taxes?
Pay under the table for now?
Help me out! I am a newb to this sort of thing, but am growing out of control right now!
:bow :bow
Click to expand...

I would avoid using a day laborer. I used a couple years ago and it was not worth it. Maybe it's different in Texas, but in Florida day laborers are for the most part very unreliable, lazy, rough around the edges and a lot of times can't drive. If none of that bothers you then go for it.:D

A help wanted flyer on your churches bulletin board would work well I think. Also, school is almost out so teenagers will be looking for summer jobs.

As far as how to pay them. You shouldn't need to provide insurance or worker's comp for just one employee. You just pay part of their witholding. OR you can try sub-contracting but that is shaky ground and might be frowned upon if you get audited.
 
You can by law pay with out taking out taxes for the first 80 hours.. then they have to be on a pay-roll.

Workers comp is cheap. its based on your pay-roll

Withholding taxes can be tricky... you hold them for 3 months at a time then send them in or if its over 2500.00 in 3 months you must send it every month.. trust me hire someone.. I have 5 guys working for me right now.. and we are backed up with 50 cars on my lot.. any questions pm me.
 
Don't pay under the table, it isn't good practice for a professional. I would go see an accountant and let them get you setup to hire someone.
 
Chris

It sounds to me that you are looking to fill in right now and if things stay busy then hire someone part time...looking for day laborers can be difficult and not reliable...the suggestion that Troy had about your church or schools would be the way I would go...as for how to pay them you can pay by check as a 1099 meaning they are responsible to pay the taxes on their income...all you have to do is send them the 1099 form at the end of the year...its also a taxes write off for you as well
 
TexasTB said:
I am at the point where I am in a hard place.
Book 2.5 weeks solid. I cannot stand it anymore. I have a $700+ a month job I cannot take because I am too full.

It is a good thing, but a bad thing at the same time.
Not sure if I want to hire a part timer right now, or just hire day labor for a couple of weeks to see how it goes. Then if it stays this busy, take the day laborer on part time.

The if I do hire part time, what are the steps I need to take? As long as they do not work 40 hours a week, I will not need insurance, workmans comp, etc,.... correct?
Can I have them withhold their own taxes?
Pay under the table for now?
Help me out! I am a newb to this sort of thing, but am growing out of control right now!
:bow :bow
Click to expand...

I don't know the laws in Texas but I'll give you an example of what it's like in California. I was using my Son on a job for Sunday work only and was notified by the company we were working for that unless I had workmans comp on him I would not be allowed on their property.

Furthermore if a guy decides to go commercial whether it be part or full time it's a prerequisite that you must carry Business Liability and Commercial Liability on your vehicle (Personal Liabillity's not enough).

One of the companies I serve is based in Ft Worth and they are absolutely the strictest company I've ever encountered.

You can use day labor, but if you're like you say "growing out of control" I'd think you'd want to hire more permanent employees.

If you're not going to be in this business for the longhaul though, do it any way you want, make all the money you can, and run away!!:crazy2:
 
I can't help with legalities. Here in PEI, we can use subcontract, but the subcontract person decides both time/hours and wages. Also, you still pay Worker's Comp on them, but not Employment Insurance and the Pension Plan and Vacation Pay. I don't use it as a way of saving money, and when my friend who was working for me decided to be payed as a subcontract, I increased his wage by $1/hour to compensate for anything.

Which leads me to how I hire. My friend is in HVAC, and in the shoulder season (spring, while houses are being poured and framed), he can work for me 2-4 days/week. It gives me time to determine what the year will be like. These are my numbers:
January: up 385%
February: up 250%
March: up 200%
April: up 210%
May: up 180% (potentially)
June: up probably 125-140%--we rocked last June

Now that I know that, I am on the hunt to replace a f/t permanent worker for him by the end of May. I may have a couple weeks of overstaff-overlap, but I can do sales and demos and shop repair etc. during those weeks, and maybe take a day or two with my family.

Besides him, I hired a university student for four months plus part-time in the fall. I may or may not get some gov funding for a university student, regardless I needed him. I hire for this person based on personality, not training. I like a happy, hard working student who will show up on time and smile at customers and listen to what I say. This summer, I hired 2 of those.

Day labourers work fine, but at only 50-75% productivity. I only call a company when I need a short time of help and don't mind losing the profit on the job. Seriously, untrained staff = -25% to 10% profit, not the normal 30-40% cost.

I'm having trouble finding the right full-time guy. Lots of workers, but they all smoke--which I don't allow--or don't have good customer skills. So I have my friend until my staff settle in.
 
You cannot 1099 people who work in your shop. Rules are clear that if someone uses your space, your tools, your guidelines, etc, then they are subject to withholding, both Fed and State. Workers comp is also mandatory. So is overtime.

Unlike immigration law, The Feds are very serious about enforcing these tax LAWS. Trust me, you should play by the rules.

I have my accountant process payroll & withholding. Once I know the gross amount for the pay period, it ALL goes into a separate bank account, the net checks are disbursed, and the balance is there to cover the taxes (when due).

Tread lightly.

JB
 
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