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John T

Employees or Subs??

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Both of the above have their benefits and different types of business models may need one or the other or both involved in your business. That's all common knowledge.

All that aside what would you rather have working for you Subs or Employees?

Personally I rather have Employees. I don't want other people's headaches and running my own business I rather deal with my own crew. Subs may do "Subpar" work where my guys do not.

What's your thoughts on this?

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Saves a lot of $ in workers comp. premiums to have subs, but comes with a lot of headache.  TN is rapidly changing the laws to where its harder and harder to sub contract work.  No matter how you have a person set up, they are deemed "sub" or "employee" by the state by a series of questions: Do you provide tools or equipment for their daily operations?  Do you control where they work on a day to day basis? Do you direct their daily job duties? etc. The goal here is to force the employer to pay the employees taxes so that they get paid and get paid on time. Its almost always more cost effective to subcontract dangerous jobs, as the w.c. percentages for pressure washing multi story buildings can be 30-50%.  In some cases even more.  Also it is now mandatory to pay the employees FICA and withholdings, unless they are a true subcontractor.  This adds to the burden as it is much easier to issue a 1099 to each person at the end of the year.  I have found some benefits of using subs, it nice to have their insurance policy in place to take the blow if something goes wrong. Also,   It can actually be a money maker.  I have used other pw companies as subs for big jobs, and they have done the same to me.

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Both are headaches. i would rather just focus my energy on my customers and business its self. And in due time hand the reins to my children. Subs and employees honestly really dont give a flying potatoe about you or your business all they care about is the check.

Marko

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