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Sub Question??? Need Advice

Discussion in 'Business Fundamentals' started by jjklongisland, Feb 27, 2008.

  1. jjklongisland

    jjklongisland Senior Member
    Messages: 470

    Need Advice

    Ok, if I am working as a sub for a guy and I have a standard 7.5' Meyer and average about 12 hours per storm and get paid hourly... If I decide to put wings on my plow or upgrade to an 8' blade and cut down some of my plowing time being more efficient. What percentage of pay increase should I expect or ask for?

    Also if I just plow only and add a sander to my truck and now sand for my boss using his sand/salt what increase should I expect or ask for; or because I might get 2 or more hours sanding additional, is that my benefit???

    Jusr currious, thinking about upgrading... Or purchasing a used sander...

    If you could let me know when answering if you are a sub or hire subs I would like to know which way the advice is coming from... Thanks guys
  2. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 9,883

    Your an employee.
    Go ask your boss for a raise.

    Before you jump on me read this...http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

    Sit down and figure out your cost.
    cost of new equipment, operating cost, maint,materiels, ins etc etc....

    Then tell us how much you need to make to see a profit.

    It's your money figure it out.....

    jmo of course
    Last edited: Feb 27, 2008
  3. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    I think what SnoFarmer means is that as a sub you should be getting a percentage of the jobs. You should make the same no matter how much time it takes you.

    But if you have your own truck, plow, insurance, business name, etc. and get paid by the hour then you are sub.

    If that is the case, then why would you want to go any faster? If you buy better equipment and your "boss" gives you a higher per hour rate, what is to stop you from going slower or keeping your hours the same and doing the same amount of work?

    Talk to your "boss" about switching from hourly to per job. That way if you buy better equipment and get done faster, you still make money.
  4. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 9,883

    Not nessarely..

    The "paid by the hr part"

    Only if it is set up this way.

    Caution: If you incorrectly classify an employee as an independent contractor, you can be held liable for employment taxes for that worker, plus a penalty.

    Who is an Independent Contractor?
    A general rule is that you, the payer, have the right to control or direct only the result of the work done by an independent contractor, and not the means and methods of accomplishing the result.

    Example: Vera Elm, an electrician, submitted a job estimate to a housing complex for electrical work at $16 per hour for 400 hours. She is to receive $1,280 every 2 weeks for the next 10 weeks. This is not considered payment by the hour. Even if she works more or less than 400 hours to complete the work, Vera Elm will receive $6,400. She also performs additional electrical installations under contracts with other companies, that she obtained through advertisements. Vera is an independent contractor.
    Last edited: Feb 27, 2008
  5. jjklongisland

    jjklongisland Senior Member
    Messages: 470

    Believe me I understand that, and where i live the majority of "Subs" call them what you will, get paid hourly, and if a boss thinks your a slacker than he doesnt call you the next storm... It doesnt have to get that complicated... I understand it doesnt work to my advantage to plow faster if I get paid by the hour but if I want to be more efficient, make my boss make more money and get more clients then I will be plowing more places hopefully more hours... he should pay me more per hour... I have never heard of anyone getting a percentage of the job, especially around here allthough that would be nice...
  6. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 9,883

    yup, you would get percentage.

    I/me, the general contractor has a lot that pays me $100 per push.
    I hire a contractor (That makes them a Sub-contractor) to push the lot.
    I pay him $75 per push What percentage is that?

    And it makes the world of difference if you are an employee like your self or a contractor..
    There is nothing wrong with being a employee.