Originally Posted by
AxelWolf
It kind of depends on what you consider an employee. Is he counting people who he recruits to get cards as employees? Is he counting people recruit people to get cards for him as an employee? Is he counting people who do pickups for him as an employee?
He better have solid people doing pickups for him or I can guarantee you there's going to be a leakage and major problems. If they're solid enough people, more likely than not they're either going to branch out on their own(like he did) or eventually move on to something else, unless they are getting a pretty big chunk or become somewhat of a partner. I have Hired people and the solid ones either want to become a partner get paid a significant amount, if not, eventually they move on to something else. There's going to be problems with some of the people who get you cards as well, some of those problems can get very serious real quick.
I’ve been busy and haven’t posted much but did see this tonight. Not taking sides but there isn’t many options when talking about legal “employees”.
Either they work for you, get a weekly paycheck based on an agreed upon wage and hours worked. Then you as the employer match their social security wages you withhold, and deduct their federal tax, state tax (if in a state that has one like NY & NJ) and local tax. You then pay the withholdings to the government weekly, monthly or quarterly based on the amount.
The other option is employees you consider independent contractors. The legal ruling are narrow on these but many try to use it to avoid matching SS taxes on their employees. In this case you provide the individual with a 1099 at the end of the year that states their total earnings. You then file a copy with the IRS so that the employee or sub contractor cannot forget to report these earnings.
These are the legal options for calling anyone an employee. Unless of course you are paying individuals cash in what many call “under the table”. But I don’t think many doing this would be dumb enough to admit it and call anyone they are paying cash employees.
Matching 7.65% of someone wages toward their future retirement and collecting their other taxes owed isn’t hard and is the right thing to do in my opinion. But everyone has their justification.