paying employees

T

tssdetailing

New member
Have a theory on paying employees $30.00/day for just showing up, then 10% commission per invoice on completed gigs. I'm just thinking that the $30 would motivate them enough to get to work, even if they are sitting on their phone all day until a car comes.
 
Not sure how you would swing that tax wise. If they are showing up to work when you tell them to show up, they are not sub contractors and you cannot pay them as such.



I would consult with a good CPA before even considering hiring employees. It is one tax related thing that the government takes VERY seriously.
 
tssdetailing said:
Have a theory on paying employees $30.00/day for just showing up, then 10% commission per invoice on completed gigs. I'm just thinking that the $30 would motivate them enough to get to work, even if they are sitting on their phone all day until a car comes.
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Not much to add except my experience.



I have a fixed location and while my hope was/is to perfect my 'paint correction' skills, DD details is the majority of my business. Problem is, in my neck of the woods, NOBODY WANTS TO WORK!



I started paying hourly and soon gave that up 'cause the two guys I hired (both needed rehabilitation from DUI's or the like) would take 7 hours to do a half A** job that I'd have to finish and I ended up paying them almost as much as I billed the customer.



So I went to straight commission ( I start @ 30%) and it's 'cash homey' until someone proves they're even ever going to show up for work the next day. I know cash is a bit risky but I must have gone thru 2 dozen or more workers in a little over a year and just thinking about all the paperwork and possible unemployment claims... I'm way ahead of the game.



I try and hire via an add on CraigsList using a Google Voice phone number to screen the calls. If I can make out the name or they reply via email, I type the name into Google and 75% of the time they show up on MugShots.com!



In my wildest dreams I never thought I'd have these kind of problems hiring decent help.



Good luck and post back if you will, what works for you. I'd be very interested.
 
When I had my shop, I had one guy working for me. I paid him a set amount per vehicle, depending on the size of the vehicle and a "bonus" if the vehicle was trashed and I billed the customer accordingly. I was lucky, he was a hard worker, did a great job, listened to me when I told him how I wanted things done, etc. He mainly did the DD's and the dealer stuff, up to a one step/no correction. He was considered a sub-contractor, which meant he had no set hours and mostly used his own stuff as per the law and I gave him a 1099 at the end of the year. I always scheduled everything in advance, so I would let him know when he was needed so I didn't have to pay him for sitting around doing nothing. Like I said, I got lucky with this guy, he always showed up when I need him, but good help can be very hard to find, I went through a couple others before I found him.
 
LeMarque-sounds like a good plan, thanks!



Richard-what a gem, sounds like the perfect arrangement. Does he still work for you? does he have a twin near cincinnati!??!!?!?
 
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