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.
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.
In this type of biz, I know that person appreciates that arrangement. I would like to do that with a worker myself.
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.
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.
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.
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.
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.
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
Please ignore my last post. I tried to edit it, then delete it. Apparently, it got posted anyway. Mick
Well, you guys who think you are going to get away with working some guy 50 hours and paying only 40 becuae he is on "salary" are in for a shocker. First you should know that you can be liable for 3 or up to five years of back wages if your employee complains and you do not rectify. YOU will be in the wrong. Your state or federal labor investigator will assume you are guilty of violating wage and hour laws unless you have substaintial documentation to prove otherwise. For an employee to be considered "exempt" from overtime, among other things, he must 1) supervise two or more people 2) perform work substantially different than those he supervises 3) have the ability to hire and FIRE those who report to him, 4) he must be allowed time off without docking him for time off for personal needs, and much more. If you claim that you didn't know he was working more than 40 hours, the dep't of labor has an expression called "knew or should have known" which will hang you. Let's say you have an employee who sits at his desk and will answer the phones during their lunch hour. Guess what guys, that is compensable time because you "suffered or permitted your employee to work." There are many more reasons why you do not want to play this game, ask your CPA or attorney, or go to a labor law seminar for an eye opener !!!!
This is why I've been putting off employees for as long as I have. But I have come to the point when I need to bite the bullet and tackle the headaches soc. security, unemployment, witholdings, etc. My body can not take the abuse I have given it the last 3 years. I have a very good CPA that I will be talking to shortly (unfortunately) that can hopefully help me out with the rules/regulations. I appreciate all the helpful info so far, but what I'm really interested in finding out is the $ amount needed hire someone *good* salary and keep that person happy. Thank you John Allin for the offer of help, but I know how busy you are. Your time is way to valuable to help me with my rinky dinky problems, but I do appreciate the offer.
I cant help you out with the salary end of the equation, but we went to a payroll not to far back, and the best advice I can give, is to hire a payroll service. You just call the hours in and they take care of the rest.Chuck Smiths wife works for one, drop him an email, and I am sure she will have some ideas for you. Dino
Yardworks, think about going through a temporary employment agency at least for awhile. There are a lot of advantages to this including being able to determine what salary is needed to get good help in your area and they take care of payroll, etc. If you need more information about temp agencies, look in your phone book Yellow Pages. If you have general questions, I'd be glad to try to help. Mick
Go to a good temp angency, not labor reader or temp labor. I realize some of these people are coming of hard times, but it will real hard to fing a permanant employee from their pool of talent. Dino
Yardworks... I can't email you thru lawnsite..... I tried. The reason I get along so well with so many is that I'm NEVER too busy (or high and mighty) to assist someone in this industry. It comes with the SIMA position I currently hold. However, at some point I would ask that you join SIMA as I'm partial to all of us banding together for the common good. Additionally, I don't "know it all" and can refer you to people smarter than I who would also be willing to help, if you so desire. Feel free to email me if you like.
I want to clarify my post from above . . . although I won't go into great detail, we did consult with out CPA to ensure that we were in compliance with state and federal law in regards to moving one of our employees from hourly to salary. Although the numbers I put in were partially factual, they were merely used as an example. Therefore, for the guys overly concerned with everyone else's situation, don't worry about it.
Totally off the thread but to reply to John I think I am interested in joining SIMA but to tell you the truth I don't know I thing about it. From what I have gathered it is an association for snow removal contractors? If anyone has the info about it or how to join I would appreciate it. I am sure I could do a search on this site and find out what I need, so when I get the time I'll find out what SIMA is all about. It's got to be good if Mr. Allin is involved.
