growler
Senior Member
- Location
- Atlanta,GA
Ok, so you guys have convinced me it's an accounting/legal/liability/insurance nightmare to "sub-contract" work; and I don't want to even appear questionable to anyone (esp the AHJ). So let me tweak the question. Assuming a $50/hr bill/bid rate, what would you think fair to pay someone as a W-2 employee (truck and tools provided by employee; brings in 100% of his jobs). Assume a total of 700 hours/yr for this equation.
As a W-2 company employee you would need to be paid for every hour that you are on company business and this includes driving to and from jobs to work and bid them. You would need commercial insurance on the vehicle and would need to be paid mileage ( best for you at the highest rate allowed, tax deductable with no workman's comp. or unemployment holdout). You would need to be paid hourly so you would be covered by workman's comp.
To bill 700 hrs. you would spend well over a 1000 hours by the time travel and biding and other paper work and such thing as stocking vehicle for jobs and call backs.
We have only got 35K billable labor and if you drive 20K miles we are out about 10K$ just in milage payments. So now we have 25K$ and a thousand hours to pay for.
Now if we paid you $12 an hour for work X 1000 hour =$12K and 3K$ rental on your tools and 10K$ milage there could be around $5k left over for the company.
This would give you a little over $35 an hour for the 700 hours that you think you are working.
If you can find someone willing to do it this would be your best bet. Low hourly rate with vehicle mileage and tool rental payment. Lower taxes would leave more in your pocket.
You would still come out better with you own business because there are more tax write offs.