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    5 Replies Latest reply on Feb 18, 2010 12:51 PM by swestall

    How do I pay employee ? I want to  use  Salary ,Commission

    mrcheap Newbie
      Archway Cleaning Service, I want to send out employees to clean carpets on commision.
      Also so I need them to clean House and Apartments.What taxes do I have to deduct from employees
      pay check, What about using independent contractors?
        • Re: How do I pay employee ? I want to  use  Salary ,Commission
          LUCKIEST Guide
          How do I pay employee?? Good Question

          Do you have an Accountant?? (if you are mrcheap you do not have an accountant).

          How long have you been in business?? Do you have a Federal I D Number??

          The State and the IRS does not like independent contractors.

          • Re: How do I pay employee ? I want to  use  Salary ,Commission
            LUCKIEST Guide
            How do I pay employee ?

            Sorry hit "post message". To finish my post, I will call you on Monday

            and discuss different payroll options, LUCKIEST
            • Re: How do I pay employee ? I want to  use  Salary ,Commission
              Here2Help Newbie
              IRS provides valuable information on their web-site and clearly explain what taxes are due for employees etc.

              Suggest you take a look at their web-site which can be found at www.irs.gov

              Once there, click on the Tab that says "Businesses" and then the underlined sub-category called "Small Business/Self-Employed" and you find information about this as well as what some of the differences between an employee vs. an independent contractor are.

              Best regards, Here2Help
                • Re: How do I pay employee ? I want to  use  Salary ,Commission
                  swestall Newbie
                  How you pay them and what you pay them are different questions.

                  If you have no experience with accounting for and paying payroll taxes you would do well to use a service to actually pay. The service will make sure you pay both the taxes and payroll; and file the appropriate returns for you. This will keep you out of trouble financially and with the State/Federal Tax collectors.

                  What you pay for a cleaning service, to keep your employee (s) motivated is a tradeoff. If you pay hourly, there isn't a lot of motivation to do things quickly/correctly, so you have to make sure supervision is present for both quality and time to perform alloted tasks.

                  As far as commission, for this type of business that would seem to be an incentive for employee's to help you get new business from new or existing clients. This can be a motivator and should be structured to reward an increase in your cashflow. Either a percentage of the initial (day/week/month) or a fixed finders fee type arrangement. It is unlikely the kind of folks who will work at cleaning will do well enough to continue employment if they are fully dependent on commission.

                  If these are Sales people, then a small draw against commission would be approptriate.