Author Topic: Hiring Employees  (Read 348 times)

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Offline Todd Muskopf

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Hiring Employees
« on: June 20, 2017, 02:44:06 PM »
I'm tossing around the idea of hiring someone part-time to do the stuff I don't want to do so that I can focus on building the business and making more money.

What is involved?

Govt. forms, providing W-2s, getting W-9s, Worker's Comp, etc.  I used to manage a business 25 years ago, but it wasn't my business and I just did what corporate told me to do with new hires.

Fill me in  :)

Offline Rick Ruff

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Re: Hiring Employees
« Reply #1 on: June 20, 2017, 08:47:14 PM »
The very thing that I grew to despise in business.  I never had a problem being responsible for myself but having to manage other people and own their mistakes was a nightmare for me.  Illnesses, divorces, all their issues became my problem and I hated it.  Not to mention the cost of accounting and payroll.

My advice is to hire help as "contract services".  Give them a 1099 at the end of the year and let them pay their own damn taxes!
RickRuff

Offline Nanette Reid

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Re: Hiring Employees
« Reply #2 on: June 20, 2017, 09:53:45 PM »
Not sure how the tax system works in the US, but if it's *anything* like AUS, I can only +100 on Rick's suggestion.  ;D


Offline Jeff Behm

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Re: Hiring Employees
« Reply #3 on: June 21, 2017, 10:24:44 AM »
Rick said it first, and I 100% agree with him and Nanette.  The first contract service I used was my bookkeeper, starting back in the '90's.  Since downsizing and moving to MD, everybody I use today is a contract service.

Offline Sbuchanan

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Re: Hiring Employees
« Reply #4 on: June 21, 2017, 11:55:04 AM »
+1 for hiring independent contractors. If you're set on hiring someone as an employee, work with your CPA and have them set up the payroll and unemployment ins, withholding, etc. That's what they're for.

Offline Duck

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Re: Hiring Employees
« Reply #5 on: June 21, 2017, 03:07:02 PM »
Yep, keep it simple. However, I would suggest talking with your accountant so that you cover all the needed bases. you wouldn't want to be broadsided by unexpected issues.
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Offline Joe Federer

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Re: Hiring Employees
« Reply #6 on: June 21, 2017, 10:19:42 PM »
I have Colleen as an employee...   not really sure why, but this thread makes me wonder and now I want to ask my accountant.  haha.

Offline Darren Cassese

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Re: Hiring Employees
« Reply #7 on: June 23, 2017, 08:31:05 AM »
If you have employees you can write of employee benefits. Don't believe you can do that with contractors.
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Offline Jeff Behm

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Re: Hiring Employees
« Reply #8 on: June 23, 2017, 10:24:29 AM »
I was on location last weekend, 2.5 hours away, with a contractor.  After the 5 hr. shoot, during which we both ate energy bars (yum), I paid for dinner.  I assumed that was a T&E deduction.  Now Darren has me wondering....

Offline Nanette Reid

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Re: Hiring Employees
« Reply #9 on: June 23, 2017, 09:55:25 PM »
I was on location last weekend, 2.5 hours away, with a contractor.  After the 5 hr. shoot, during which we both ate energy bars (yum), I paid for dinner.  I assumed that was a T&E deduction.  Now Darren has me wondering....

Would be interesting to know - here in AU, we can claim this, as it's part of the shoot, however, if it was just a regular day, not able to do so.

About 20 years ago, the government made changes to the FBT (Fringe Benefits Tax) and shut down a lot of "business lunches" - Friday's used to be extremely busy for restaurants etc as business people took their clients to lunch; once it came in, restaurants lost $$$$ and eating out on Fridays became rarer.

Now such claims are limited to being "away from home" - eg if the employee is on an overnight trip or well away from the "usual place of business" - eg: a day trip interstate. With photographers when you're shooting it's claimable, however, when you're doing paperwork it's not.

Offline Darren Cassese

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Re: Hiring Employees
« Reply #10 on: June 24, 2017, 09:07:40 AM »
I was on location last weekend, 2.5 hours away, with a contractor.  After the 5 hr. shoot, during which we both ate energy bars (yum), I paid for dinner.  I assumed that was a T&E deduction.  Now Darren has me wondering....

I'm fairly certain meals and per-diems are acceptable. But employee benefits could maybe include other extras, such as bonus incentives.

But it coul be that these all apply to contractors as well...I'm running on memory from past accountant conversations about the topic and I was thinking there was a difference.
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