I'm in the process of looking to hire my first employee and I'm currently weighing the options between hourly or a IC. The one thing that kills it for me on the hourly is the workers comp insurance. Here in CA it's outrageous and from the information I've gathered so far, to hire ONE person will mean me giving up roughly half of my current income. I expected to lose a bit of my own income when hiring someone, but HALF? Is this the norm?
As for hiring an IC, the thing that kills it for me on that is I can be liable if they get injured on the job - which will financially devastate me and my family. Can I have a legally binding contract written up protecting me from being held liable for injury or is this not possible?
What about paying them a percentage of the job? What percentage is normally used and how does this work? Are they still paid as an hourly (meaning workers comp, ins, etc) or as an IC? I know nothing about how this works and I'm intrigued by it....
I've been in business for and by myself since 1994, but I am rather new to the cleaning business. I've always done fine solo, but hiring employees is totally new to me. I am blown away at how difficult financially it is to grow your business, especially here in CA where the state motto is instead of "I'll be seeing you" is actually "I'll be suing you". :(
I could sure use some advice. I am at the point where I am nearly maxed out with customers and can't grow on my own since there is only one of me. I see all kinds of untapped potential in my little town as it is hard to get outside businesses who want to make the drive up here. I would hire local.
So, it's either stay where I am and turn business away/stagnate - or bite the bullet and take the risk of hiring someone to help out.