Poll: What Would Be Fair Pay For A Helper?

[kwelna]

You may have greater issue than that as when Obamacare hits you may have to provide affordable health insurance as well. I have seen and heard differing views on how this will actually effect small employers the opinions tend to be a bit sumlar but still no diffinitve information and I am too lazzy to read a 2500 page document of government speak that basically leaves them any number of loop holes to nail an business they want. This is one of the reasons the economy is slow to pick up. Many small employers are taking a wait and see approach to addding employees until they actually know how the system will work and how it will effect them (Read that as How much will it cost them.) But make no misrtake, if you provide material, equiptment etc. and direct their work, they are considered employees, Its very easily to this spiral into a big mess especially if the person is some how injured on the work site. In my experience as a contrator for 4 years back inthe 80's, they (the government) seemed to take great pleasure in shafting small businesses. They are greedy for more money, they have collected all they can from us for now. So they are looking for alternative ways to add to their tax coffers. I would look at "selling" your friend some tools and a sewing machine (say for $10) and pay him by the piece and have him work from his house or rent space in your shop. Have him get a sales tax id # and keep records of all financial transactions between the two of you (Rent, % of utilities, supplies and payment for items made) as proof that he is a contractor and not an employee. You need to make it look like he is not an employee but a person doing contract work. Let him come in and learn as a hobbyist. " NO pay but grant access to equiptment and have him make a few items for himself from berginning to end (Cutting out pieces to sewing, finishing etc. to learn). Once he is competent and confident, hire hime as a "contractor". But in any case talk to your accountant or a labor lawyer to make sure what ever you do will pass muster with the government before you try anything. I will only cost you about 200-500 dollars to speak with an attorney for an hour or two and may save you a lot more. Also, realize that he (Your contractor) may at some point wish to breakaway and start his own simular business. YOu may be creating a future competetor. Good luck and realize that our government be it local, state and national do like small business' . They have not liked us since about the 1950s. Anything they can do to squeeze money out of you they can and will . Once you are on their radar you are hosed. There ya got my $.02

Good luck!

[KAYAK45]

Wow.. Lobo..What a great, nearly all inclusive, succinct answer.

This really ought to be "pinned" for all to read in the future.

KWL, CPA. Senior Core Retired Executive (SCORE) Mentor.

[RMB Custom Leather]

Thank you all for the information! Don't forget to vote on a fair % to pay on the poll above.

Edited August 6, 2012 by RMB Custom Leather

[electrathon]

Thank you all for the information! Don't forget to vote on a fair % to pay on the poll above.

Unfortionatly your poll is flawed. It does not matter what % you are offering, if it does not cover minimum wage it is not enough.

[RMB Custom Leather]

Unfortionatly your poll is flawed. It does not matter what % you are offering, if it does not cover minimum wage it is not enough.

I have to have an idea of what commission I will pay before I can give him a package on pay guys, I will cover the other issues when I nail this down. Just want to know everyone's opinion on what they think would be a fair % on sales. The min. wage and laws coming with it are what they are, not much of a way around it. This poll is for what more other then min. wage should I offer, not really about employment laws. I do appreciate everyone's posts and information, I will take it all in before I make a decision. Maybe I should have worded it differently. Just want a ball park.

Edited August 7, 2012 by RMB Custom Leather