What is a fair wage for an employee? - Cleaning Talk - Professional Cleaning and Restoration Forum
 
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post #1 of Old 08-16-2016, 08:19 PM Thread Starter
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What is a fair wage for an employee?

Hi, I've been offered a job by someone who cleans homes for a living. She charges $20/$25 an hour and has so much work she cannot do it all herself. She's decided instead of turning work away to hire on someone to help out. She is offering me a 60/40 cut tax free which puts me at $12/$15 an hour depending on what is charged per hour above. She provides her own cleaning supplies to the clients that are charged $25/hr, but the majority of her clients provide their own supplies and they are charged $20/hr. Does this sound like a fair deal? Thanks.

Last edited by sekaz99; 08-17-2016 at 09:22 AM.
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post #2 of Old 08-18-2016, 07:55 AM
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It sounds like you and the customers are getting a good deal. I charged $48 an hour per cleaner and gave my cleaners $10-12 per hour. Your friend shouldn't be offering under the table work, she should be charging her customers more, but that's a different topic for a different day.

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post #3 of Old 08-18-2016, 09:14 AM Thread Starter
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Thank you for your response. Perhaps I should have clarified that I would be working as an independent contractor. I feel the same way regarding charging the customer more. I believe my friend deserves more for the quality of work she provides. Her clients LOVE her and her business is growing because of the great word-of-mouth referrals she is getting. She works in high end exclusive neighborhoods, however, I'm not sure if she could get more money or how she'd go about competing (except for the word of mouth) with the hoards of other cleaning companies who charge the same rate. This rate seems to be the going rate for our area. Thank you again for your comments.
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post #4 of Old 08-18-2016, 09:55 AM
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If I were you, as an independent contractor, I wouldn't accept those prices. This puts you in the owner's seat where you would be responsible for your own "business" which includes your own taxes and your own expenses. In a business standpoint, you would be better off getting your own customers and charging them correctly.

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post #5 of Old 08-18-2016, 02:25 PM Thread Starter
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So are you saying it would be a better deal wage wise to be hired on as an employee, except be paid above board? I get it that if I went out and got my own customers I would be making more money and could charge them more. The whole idea of considering her offer was to make some extra money but not have to deal with starting from the bottom and try to get my own customers-at least not yet. Right now having her deal with getting the clients and checking them out and such, plus buying all the supplies, if needed, sounds good to me at the moment. I understand that I'm not going to get the big money, I just wanted to see if the percentage she was offering me (60/40) was a fair one for the hard work I would be doing. Also, just out of curiosity, what did you mean when you said I'd be better off getting my own customers and "charging them correctly?" I'm just curious what would be considered correctly. Thanks again for your advice-I appreciate it!
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post #6 of Old 08-18-2016, 02:38 PM
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sekaz99, the answer is yes, $15/hour is a good deal for the work.
Charging them correctly means this: "You get what you pay for, so charge what you are worth".
I have a hard time believing that the "going rate" is only $25/hr.

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Last edited by epicheather265; 08-18-2016 at 03:37 PM.
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post #7 of Old 08-21-2016, 03:40 PM
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Your friend can't afford to hire you as an employee under the terms you have described. After payroll taxes, insurances and WC (if required) she'd be under water. IMO, if you are doing houses solo as an IC - and you are capable of doing a consistently good job ie.) your friend has little or no complaints to manage from these accounts, I believe you should be able to negotiate a 40/60, 30/70 up to 25/75 split.

Terms should be included in your IC agreement.
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post #8 of Old 08-24-2016, 07:08 PM
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Quote:
Originally Posted by Cleanexp View Post
Your friend can't afford to hire you as an employee under the terms you have described. After payroll taxes, insurances and WC (if required) she'd be under water. IMO, if you are doing houses solo as an IC - and you are capable of doing a consistently good job ie.) your friend has little or no complaints to manage from these accounts, I believe you should be able to negotiate a 40/60, 30/70 up to 25/75 split.

Terms should be included in your IC agreement.
I agree with the negotiation part and this is only applicable for IC. We are running our business as a company and we are paying insurance, workers comp, breakfast, fleet... and the whole nine yards. We are thinking to convert it to as a referral agency to get out from those expenses.
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post #9 of Old 08-28-2016, 09:59 AM
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I'm new to this but my friend has a cleaning company. She charges about $25 an hour and pays employees $12/hr. They have 10 employees. I dont know how she does it but I'm trying to figure this out. So I think that the key is to have your own clients. Other companies in the are charging $30/hr. Fiirst time cleanings are about $130 for 4-hrs. It's a wealthy area but there is some competition.
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post #10 of Old 08-29-2016, 01:38 PM
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From what I have been told, there is a new law where it is now against IRS regulations for a cleaning business to use independent contractors. Anyone doing work for the company must be an employee. Has anyone else heard this?

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post #11 of Old 09-01-2016, 10:21 PM
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Quote:
Originally Posted by Kleeny View Post
From what I have been told, there is a new law where it is now against IRS regulations for a cleaning business to use independent contractors. Anyone doing work for the company must be an employee. Has anyone else heard this?

The IRS doesn't like employers misclassifying employees as independent contractors. In this business, if you are using IC's, chances are that according to IRS guidelines they should be classified as employes.
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post #12 of Old 09-16-2016, 06:40 AM
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Fair Wage -
I have found that it's not only being fair with hourly rates for employees but more importantly they want to feel the love from
the owner. In other words you always must remain interested in them personally, supporting them, giving them "spiffs" from time to time etc.
There are many other things you can do besides paying more than you need to hourly. Think outside the box. Dinner out certificates for a job well done,
incentive if they complete a job quicker while still maintaining the quality work - etc.

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post #13 of Old 09-17-2016, 12:54 PM
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The difference between a contractor and an employee is how much control you have over them. If you control certain things, then they are your employee if you don't, then they are a contractor.
The biggest question in determining control is whether or not they have other customers besides the ones you give them. Are they their own business/sole proprietorship or do they stand under your umbrella of employment?
You can also have too much control if you decide what they wear (your uniforms), train them (your way), or provide supplies.
If you get so busy that you need help and you call Janet from Janet's Cleaning Company, then she's a contractor. If you call up your friend Jane, you give her all the supplies and a uniform, tell her to go clean for your customers and if she gets new customers that she'll get a bonus. That's an employee.

Last edited by epicheather265; 09-17-2016 at 01:02 PM. Reason: Because
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post #14 of Old 09-27-2016, 10:47 PM
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I say the 12/15 isn't bad. How many people are one the team?

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