Hiring employers

[mirekturon]

Hey guys if you hire somone do you hire as independent contractor or employee ?
Thanks.
Mirek

[Grizzly]

We always hire as employees. In Ontario there are strict guidelines concerning what is a sub contractor and who is an employee. For example, if they service they same premises for a certain length of time they are classified as employees and you as the employer are responsible for employer expenses. This applies even if there is a sub contractor agreement between both parties.

Bill

[mirekturon]

OK, thanks for your response Bill.

[Ty's Tidy Cleaning]

I am new to the cleaning industry, however I have many years of experience in hiring independent contractors versus employees, and in my opinion I think that as a new employer trying to establish your business it would benefit you tremendously to have sub contractors versus employees, especially if your new business venture is financed from your personal pockets. If saving money is not a concern of yours then sure, hire employees.

Some of the benefits of hiring independent contractors is the fact that they will be responsible for paying there own federal/state taxes and more importantly it saves you money from matching soc sec taxes and lets not forget about unemployment compensation taxes, however I do not know that I would do this long term, maybe for the first year or so until your business is bringing in enough revenue to afford the additional payroll expenses you will incur. Also the best time to make any payroll or financial changes to any business is at the first of the new year.

Good luck to you, let me know which way you decide to go and how it is working for you.

[logan5127]

tysmith727 said:

I am new to the cleaning industry, however I have many years of experience in hiring independent contractors versus employees, and in my opinion I think that as a new employer trying to establish your business it would benefit you tremendously to have sub contractors versus employees, especially if your new business venture is financed from your personal pockets. If saving money is not a concern of yours then sure, hire employees.

Some of the benefits of hiring independent contractors is the fact that they will be responsible for paying there own federal/state taxes and more importantly it saves you money from matching soc sec taxes and lets not forget about unemployment compensation taxes, however I do not know that I would do this long term, maybe for the first year or so until your business is bringing in enough revenue to afford the additional payroll expenses you will incur. Also the best time to make any payroll or financial changes to any business is at the first of the new year.

I disagree for the most part. I believe that subs are great if you don't have equipment; don't know how to do a job; a job is to big for you to handle; or your equip is broken. I don't think payroll expense should be a reason to hire subs. You can make a lot more profit doing a job yourself with employees than you could subbing out a job. Or at least you should. One of the biggest contracts I have gotten was because another guy thought workmans comp was to much. I charged three times higher than what he was doing this contract for and got the job because I was willing to pay for it. You should figure your payroll into the cost and charge enough to cover it. If you are charging enough to pay a sub than you are charging enough to cover payroll expenses and make more profit. Never let payroll expenses cause you to loose money from fear of doing a payroll. Also you can start a payroll anytime of the year from Jan to Dec.

[jahra352]

I agree with Dan. The only thing to consider though is whether to hire a legitimate sub-contractor which is an established business to take care of an account. They would have their own liability insurance, workers comp and bonding insurance. The majority of my business is set up this way, as a close friend had his own business but needed customers. I can trust this person not to steal my accounts away!
Other cleaning companies want to pay an employeee as an independent contractor. This person doesn't possess a legal business with liability insurance.

[thedirtdoctors]

there are many temp services out there if you need labor wich only charge $1-$3 an hour for an employee that means no workers comp. taxes ect. they take care of it and alot have employee benifit packages for them to. Plus you can hire and fire as seen fit.

[Pages Personal Cleaning]

One thing to consider if you are new to the business is, the first year you pay for workers comp, it is outrageous. In the state of Indiana if you are a new business getting Workers Comp for the first year, it is 2,500.00 payable upfront, no payment plan. That is for 3 employees. After the first year it goes down if they see you aren't going to file a lot of claims. I don't think many new companies can afford that.
Patti