Employees vs Subs

[Terry Portier]

I'm a GC looking @ employees vs subs. I'm collecting employee cost based on hiring two to do rehab work @ $30K ea to make the decision. I don't like not having control over my subs, that is why I am looking at employees. I'm sure they will cost more, but more control may be worth it and the risk of the dept of labor or the IRS seeing me, and fining me as treating them like employees gone. However, employees impose different risk. WC goes up so does liability insurance, admin payroll, etc.

There are pros and cons, anyone see anything I missed or have experience with both?

Annual Payroll $60,000

TAX

• FICA

Insurance

• Workers Comp $3,300
• Liability $1914
• Unemployment
• Equipment
• Auto

Health Insurance

• Group Insurance

Overtime (Fair Labor Standards Act)

• Exempt
• Non-exempt

VIP retirement

• company match contributions
• vesting schedule

Leave of Absense

• Sick
• Holiday
• Vacation

Other considerations.

• Warn act (termination)
• Labor laws, employee vs subs (penalties, back tax fines, etc)
• Admin time per pay period
• Annual performance reviews ( job descriptions)
• Career paths corporate ladder
• Legal risk