Compensation

H

harrell51

New member
Joined
Aug 17, 2013
Messages
81
Reaction score
0
How do you pay your detailing employees, labor by hour, commission, combination or please explain if any other wsy

Sent from my SAMSUNG-SGH-I317 using AG Online
 
The IRS has very strict "employee status" guidelines for Businesses.

A tax attorney will provide the best information to having to pay wages, withhold taxes, etc...
for Statutory employees/non-employees; and/or Independent Contractors/Self-employed.


Bob
 
That is rather 'open ended' in status. The term "employees" will guide how you need to work out payroll status, as well as State and Federal withholding, Social Security, et al.

Now if you are talking about "casual labor" different rules apply. I've not looked in years, but it used to be a maximum of $600 annually, per person, before you had to withhold any taxes.

If the person you are hiring is/has another qualified business, and you are writing checks TO that business then it'd be between that business and it's own tax liability to determine how it ends up paying. In other words, you'd pay the 'business' the full amount you agreed upon and leave it at that.
 
I would say most people who do detailing do it as a side gig and if they feel the need for an employee would just pay them with cash. No paper trail, and no worries.
 
I guess I was not clear on the questions.

While runn8ng a detailing business when you hire employee's for those who run there own business and have hired employees. What form of payment do you pay your employees, hourly, commission, or combination of both? In this situation taxes is a given.

Sent from my SAMSUNG-SGH-I317 using AG Online
 
harrell51 said:
I guess I was not clear on the questions.

While runn8ng a detailing business when you hire employee's for those who run there own business and have hired employees. What form of payment do you pay your employees, hourly, commission, or combination of both? In this situation taxes is a given.

Sent from my SAMSUNG-SGH-I317 using AG Online
Click to expand...

I have no employees, but if I did I would pay them a handsome hourly wage along with bonuses based on their perfomance. i.e. how much money are they making me
 
harrell51 said:
I guess I was not clear on the questions.

While runn8ng a detailing business when you hire employee's for those who run there own business and have hired employees. What form of payment do you pay your employees, hourly, commission, or combination of both? In this situation taxes is a given.

Sent from my SAMSUNG-SGH-I317 using AG Online
Click to expand...
Taxes are not necessarily a given, if the employee(s) are Independent Contractors.

Just as I liked being paid...
Other types of employees would be paid on an hourly basis.

Bob
 
CowboyTruckn said:
I would say most people who do detailing do it as a side gig and if they feel the need for an employee would just pay them with cash. No paper trail, and no worries.
Click to expand...

You would be amazed how well the IRS finds out about these 'side gigs'. Those people are also not likely reporting their detailing income to the IRS. Many of them will get away with it, many of them will get hammered HARD by fees, fines, or worse...

If you want your clients to take you seriously, then you should take your business seriously and do it right. My $0.02! (Not necessarily directed at you, but at anyone who would consider paying 'under the table').
 
Romans5.8 said:
You would be amazed how well the IRS finds out about these 'side gigs'. Those people are also not likely reporting their detailing income to the IRS. Many of them will get away with it, many of them will get hammered HARD by fees, fines, or worse...

If you want your clients to take you seriously, then you should take your business seriously and do it right. My $0.02! (Not necessarily directed at you, but at anyone who would consider paying 'under the table').
Click to expand...

I understand but I'm lucky to get one every fee months, family friends, etc. The burden of proof is in the irs hands though. I've never even gotten a check.
 
I paid mine peanuts and bananas because they acted like monkeys when I was not around.
Joking aside, I had two employees with me when I had my mobile business. I paid them by the hour. I took out taxes and all the cursory required fees. It protects you and them in the long run if you do it correctly.

HUMP
 
Well according to law if a person represents your company he or she can not be a contracted worker. Therefore you will be required to pay taxes. My goal is to be a legitimate business not one who who tries to cut corners.

Sent from my SAMSUNG-SGH-I317 using AG Online
 
Just trying to compare my thoughts on pay to others. Competition for a legal employee

Sent from my SAMSUNG-SGH-I317 using AG Online
 
harrell51 said:
Well according to law if a person represents your company he or she can not be a contracted worker. Therefore you will be required to pay taxes. My goal is to be a legitimate business not one who who tries to cut corners.

Sent from my SAMSUNG-SGH-I317 using AG Online
Click to expand...

Not necessarily.

My wife's company is a fortune 500 company. Tbey need fleets of drivers with trucks of their own to tow vehicles from outiside the office's to each lot. Tbey have several hundred lots across the country, including Alaska and Hawaii.

Their solution has always been (since the 60's) that the drivers are contractors. Even though they are dispatched by each office, and have company checks with them.

Actually the company was privately owned from tbe mid 60's till 5 or 6 years ago. Even then they had 9 lots in GA and NC. I contracted to them in 85 through 92 exclusively (with 3 trucks) then I went in a different direction. Yet up until I retired in 2003 I still occasionally pulled a vehicle or two for them. So I can tell you tbat contractors are very legal for your business. ;)





Sent from my SAMSUNG-SGH-I337 using AG Online
 
I agree on that point but if you wear a uniform with there name and logo and they can be held responsible for the things you do then you are not a contract worker. I'm sure this is not the case. If so I was taught wrong while getting my masters in hr. Sorry I guess I am getting of point with the original topic.

Sent from my SAMSUNG-SGH-I317 using AG Online
 
We pay ours hourly. We intend to find a reasonable incentive for them, perhaps a small slice of the monthly net pie. I would not use the contractor approach unless they truly are.
 
I think it's best to consult a tax attorney or CPA if you questions concerning employees versus independent contractors. You might also want to visit the IRS site on the internet as they may have some helpful information. I was once the treasurer for a condominium association and we had to have a W-9 form from the contractors we used for repairs and in turn we issued a 1099-MISC to every contractor we paid in excess of $600.00 unless the contractor was incorporated and if incorporated we did nothing. A copy of the 1099-MISC also was sent to the IRS. I don't know if this would apply to detailers but it might. Better to be safe than sorry.
 
Last edited:
You must log in or register to reply here.
Back
Top