Pros and cons of hiring employees

Arborist Forum

Help Support Arborist Forum:

This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.
I think I brought up some of these points on the "regulation thread"??

It does seem as though its not possible to run a fully legit biz
LXT.................

I condensed your post, only because I think you are not comparing apples to apples. We are fully legit and do very well. Every year is better than the last. Like you say, "Ah! What a rush!"
Jeff :cheers:
 
Lets assume the above to be accurate.. what about:
.5% statutary holidays
4% vacation - or maybe even 6%
.5% - just a guess for training - tailgate meetings, etc.
we have gov't pension plan - maxes out at around $1800 year per employee.. for get percentage to get there.. but it is always paid by mid year .. so percentage is high enough.
our health insurance is low.. about .04% or something like that..

Guys do not realize it all adds up..

So if im understanding this right going on JPS numbers and what you are saying as far as health insurance and other benefits an employer is looking at spending roughly 50% of every dollar paid to an employee in labor costs. So saying that then if im paying $15 an hour then it's costing me $22.50 an hour.
 
Last edited:
...

Although I think that what JPS wrote seemed reassuring..wage plus 30% I can do! But I have been under the impression its atleast 50%. Some one earlier wrote ...10 an hour cost me 17.50 an hour...so if i wanna pay 15 n hour it will cost 26.25 ?! X3=78.75 an hour + all the other expensenses. And then I still gota make $ ? :dizzy:

A few years ago I was paying just a few points less than 100% of payroll for tree services! If my tree climber got $200 for the day, so did the insurance company.

If you go legit, you need to read my posts about how to keep workers comp trimmed to a minimum. When it comes to workers comp. insurance, "topping" is a highly desirable practice.
 
A few years ago I was paying just a few points less than 100% of payroll for tree services! If my tree climber got $200 for the day, so did the insurance company.

If you go legit, you need to read my posts about how to keep workers comp trimmed to a minimum. When it comes to workers comp. insurance, "topping" is a highly desirable practice.

I hope you can explain, because this makes no sense.
Jeff
 
What is there to understand? When the WC insurance audit came around every year, the invoice for insuring anyone in "Tree pruning", code 0106 was equal to the wages I paid.

$20,000 in tree wages paid= (almost) $20,000 in worker's compensation insurance bill.

Is that clear enough?


...or was my comment about topping the WC expense confusing? I was attempting to use tree trimming jargon for a despised practice as a suggested activity to do to anyone's insurance bill. I also suggested that you use the search function to find my posts explaining how this might be accomplished. D'ye unnerstan yet?
 
Last edited:
In California, if your ground guys are dragging brush and blowing and raking on a big pruning or removal job, you will pay 50% WC on the groundies because they are on a job that that climbers are on. If you are doing a job with 400 Elderica pine's at 7 feet for structure prune, everyone is around 14%.
Jeff
 
There doesn't seem to be any distinction in Mo. about whether climbing trees or not. We kept all our groundies in "Park-NOC", which came in at a much lower rate. Quite frankly, I suspect that a really detailed investigation might have put our entire crew into "tree trimming".

If I was paying 50% anytime there was a climber present, I think I wouldn't do any brush cleanup until he was gone.
 
There doesn't seem to be any distinction in Mo. about whether climbing trees or not. We kept all our groundies in "Park-NOC", which came in at a much lower rate. Quite frankly, I suspect that a really detailed investigation might have put our entire crew into "tree trimming".

If I was paying 50% anytime there was a climber present, I think I wouldn't do any brush cleanup until he was gone.

It must be nice living in the Boonies with no reg's!
Jeff
 
I know this is going to sound stupid, but do you have any family that wants to work in the tree industry.

Personally I would not hire family or friends. Those are two things I would stray from..........However, Father/son relationships are the exception to the rule. Meaning the business gets passed on.
Partners, Brothers/Sisters, Spouses, Children. If you like to bicker try it out. I have never seen it effective in the long haul. A business needs to have an absolute monarchy to succeed. Hiring family/friends limits this.

Earlier I said my cost rate for employing someone is 1.75 x wage paid. It is not quite this high. But honestly, I like to make money, copious amounts of it, and if I bid them in at this rate, that is what happens............ You start making money; both on your employees, and on yourself, and that is when you will see the benefit of having an employee. :biggrin: never, never, never give up. You can do it!
 
Personally I would not hire family or friends. Those are two things I would stray from..........However, Father/son relationships are the exception to the rule. Meaning the business gets passed on.
Partners, Brothers/Sisters, Spouses, Children. If you like to bicker try it out.

I agree :agree2:

My sons work with me, but not all the time.. would love it if they did. My spouse works with me, but in office.. answering phone booking appointments, doing bills/accounting, etc. Works ok.
 
I condensed your post, only because I think you are not comparing apples to apples. We are fully legit and do very well. Every year is better than the last. Like you say, "Ah! What a rush!"
Jeff :cheers:


whatsup jeff? I shoulda explained that a lil better I guess.....when I go out & bid work & the homeowner/customer is looking for a "low cost provider" (thats puttin it nice).........they are not hesitant about showing numbers, I read some of those numbers (bids) & know there is no way some of those companies are running legal, no way at all...!

Its those jobs that I walk away from thinking....whats going on here? even in high end areas these type of bids are welcomed, its kinda frustrating at times for a legit company.........especially in my area within the next month or so... the hungry will be out & the low bids will fly!!! I just hold steady knowing Iwill see the competition working as im bidding...............but then Ill be busy enough, currently I have a good work load.......which is a surprise!!

you take care Jeff!!


LXT..........
 
whatsup jeff? I shoulda explained that a lil better I guess.....when I go out & bid work & the homeowner/customer is looking for a "low cost provider" (thats puttin it nice).........they are not hesitant about showing numbers, I read some of those numbers (bids) & know there is no way some of those companies are running legal, no way at all...!

Its those jobs that I walk away from thinking....whats going on here? even in high end areas these type of bids are welcomed, its kinda frustrating at times for a legit company.........especially in my area within the next month or so... the hungry will be out & the low bids will fly!!! I just hold steady knowing Iwill see the competition working as im bidding...............but then Ill be busy enough, currently I have a good work load.......which is a surprise!!

you take care Jeff!!


LXT..........

:cheers:
I get it now.
Jeff
 
What is there to understand? When the WC insurance audit came around every year, the invoice for insuring anyone in "Tree pruning", code 0106 was equal to the wages I paid.

$20,000 in tree wages paid= (almost) $20,000 in worker's compensation insurance bill.

Is that clear enough?


...or was my comment about topping the WC expense confusing? I was attempting to use tree trimming jargon for a despised practice as a suggested activity to do to anyone's insurance bill. I also suggested that you use the search function to find my posts explaining how this might be accomplished. D'ye unnerstan yet?

WOW......here the Audit is quarterly, we pay based on payroll too its like $30.00 per hundred........so 30% some where around there?

but to pay an equal amount as what your payroll is......jeesh!! that right there is why some fly under the radar......who just starting out could/would subject themselves to that?

whats sad is.......right now I am in the process of trying to obtain vendor qualification for a local electric utility.................what fun it is!!!!! Im not even interested in the line clearance aspects, I am interested in the pre-planning, assessing, consulting, data & mapping contract, but all vendors must have the same limit coverage.

I think this is crazy............But, whatever! the limits they are requesting are not for the faint at heart & the initial upfront costs....well lets just say...it would appear they or someone doesnt want the lil guy in the reindeer games!

this is just to qualify I might ad, no gaurantee of even getting a contract!! So... Ill have to think about if it is worth it or not, Ill be competing against Davey resource group & ACRT...................BTW......cost wise for what they want will be in upwards of $10,000.00 a month!!!!




LXT...............
 
pro`s........if you love this trade then do it right, no holds barred & go for it
con`s.......if this is too much for ya to handle..........then consider barber school
.

:agree2: As interesting as this thread is I guess the only thing to do is just do it. I am gonna make an appt with an acct that was recommended to me by a couple of guys I know . They both said she knows her stuff. One things for sure...its not gonna get done right getting info from people all over the USA and Canada! LOL, plus my wife said this is the last year she is doing the taxes...she is smart but they are getting alittle over her head. Thx for all the help.
 
Lets assume the above to be accurate.. what about:
.5% statutary holidays
4% vacation - or maybe even 6%
.5% - just a guess for training - tailgate meetings, etc.
we have gov't pension plan - maxes out at around $1800 year per employee.. for get percentage to get there.. but it is always paid by mid year .. so percentage is high enough.
our health insurance is low.. about .04% or something like that..

Guys do not realize it all adds up..

That would show up in payroll, holiday pay shows up in the check. I think there is a way to code things so that it does not show up in IC & W/C numbers though, but then i am not an accountant. I recall hearing some things.
 

Latest posts

Back
Top