I started a seasonal business last year, and my employees get paid per foot for install of the product. This is only seasonal, about 3 months out of the year, but they can make upwards of $600-$800 per day if they install enough. They are 1099 employees right now, but I want to put in place company policies to make installs more effecient and safe. Another reason I would like to go W2 is so I can start offering benifits to them. Since this is only a seasonal gig, I need to compensate well and have perks to keep people coming back to work every year. If I do that will I need to make my employees W2 employees? If so, will overtime pay be required for W2 employees if they are getting paid per foot of install? Most weeks during the season they work 60+ hours, however they are already compensated very well and I cant afford to pay overtime pay on top of what they are already making. I’m just wanting to know what the best way to go about this is? What are pros and cons of w2 vs 1099?
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u/SafetyMan35:Yes to all of your questions. I provide them the tools and safety equipment they need, schedule the installs, and tell them how to do the job based on what the customer wants.
u/GillianOMalley: They do not have an hourly rate, just paid per foot of install and a bonus per finished install. That being said, they can make 600-800 working 8-10 hours a day during season. They are averaging $70-$80 per hour. How can I, if possible, have W2 employees without paying time and a half if they work over 40 hours? If I paid everyone 1.5X for overtime on top of what they make I would literally go broke and nobody would have a job lol.