[richard jagger]

A good rule oF thumb is 30 % wages 30 % COSTS AND 30% PROFIT FOR THE BUSINESS .

[Window Washers]

A good rule oF thumb is 30 % wages 30 % COSTS AND 30% PROFIT FOR THE BUSINESS .

I have to ask what happens to the 10% :

[CLEANCARE WC]

A good rule oF thumb is 30 % wages 30 % COSTS AND 30% PROFIT FOR THE BUSINESS .

I have to ask what happens to the 10% :

Under the mattress ask me no questions i will tell you no lies 

[supernova77]

i;m shocked you pay anyone that much as a WC?  55% of turnover is huge. especially for an unskilled job.  after your costs you must end up with something like 30% of turnover or less.

my guys earn a wage which is below 20% of my turnover at £50 a day.

55% works for me... He earn's decent money, it keeps him happy and doing a good job. £50 a day is nothing - Whats your employee retention like?

Andy

[supernova77]

A good rule oF thumb is 30 % wages 30 % COSTS AND 30% PROFIT FOR THE BUSINESS .

So if I worker turned over £200 in a day, he would only get £60 ?     Costs would be no where near £60 unless he was using a lot of fuel driving miles?

Andy

[Window Washers]

A good rule oF thumb is 30 % wages 30 % COSTS AND 30% PROFIT FOR THE BUSINESS .

So if I worker turned over £200 in a day, he would only get £60 ?     Costs would be no where near £60 unless he was using a lot of fuel driving miles?

Andy

Andy you would be shocked at the cost of what a customer costs you, fine detail it and see what it really costs you, I did this the other day with someone on the phone to show what I meant they where shocked, good for you for paying 55% of your business to someone that does not have to run it, thats a cracking deal for them not so cracking for you. do you pay him this at the end of the day week or when you get paid ? how does the NI and tax and your contribution work in these figures ?

[Richard iSparkle]

i;m shocked you pay anyone that much as a WC?  55% of turnover is huge. especially for an unskilled job.  after your costs you must end up with something like 30% of turnover or less.

my guys earn a wage which is below 20% of my turnover at £50 a day.

55% works for me... He earn's decent money, it keeps him happy and doing a good job. £50 a day is nothing - Whats your employee retention like?

Andy

employee retention is fine thanks.  i think you're overpaying him by a long way.  but if it works for you, i'm sure he's a happy man so good for you.

[supernova77]

Andy you would be shocked at the cost of what a customer costs you, fine detail it and see what it really costs you, I did this the other day with someone on the phone to show what I meant they where shocked, good for you for paying 55% of your business to someone that does not have to run it, thats a cracking deal for them not so cracking for you. do you pay him this at the end of the day week or when you get paid ? how does the NI and tax and your contribution work in these figures ?

Yeah he is on a good deal... But I earn from him working for me so I' happy to.

He works for me 3 days a week on a self employed basis... He has other work the other 2 days... Yes, he uses my equipment etc so it's a bit of a grey area, is he actually employed or not etc...

employee retention is fine thanks.  i think you're overpaying him by a long way.  but if it works for you, i'm sure he's a happy man so good for you.

I wasn't having a go in my last post... I just thought £50 is low, just as you think 55% is high... How much does he turn over in a day?

Andy

[Richard iSparkle]

Andy you would be shocked at the cost of what a customer costs you, fine detail it and see what it really costs you, I did this the other day with someone on the phone to show what I meant they where shocked, good for you for paying 55% of your business to someone that does not have to run it, thats a cracking deal for them not so cracking for you. do you pay him this at the end of the day week or when you get paid ? how does the NI and tax and your contribution work in these figures ?

Yeah he is on a good deal... But I earn from him working for me so I' happy to.

He works for me 3 days a week on a self employed basis... He has other work the other 2 days... Yes, he uses my equipment etc so it's a bit of a grey area, is he actually employed or not etc...

employee retention is fine thanks.  i think you're overpaying him by a long way.  but if it works for you, i'm sure he's a happy man so good for you.

I wasn't having a go in my last post... I just thought £50 is low, just as you think 55% is high... How much does he turn over in a day?

Andy

no problem andy.  they turn over between 320 and 360 a day at that.  paid for 8 hrs work, but finish after 6.5 usually.  give them bonuses for attendance and for signing up newbies, and another bonus for cleaning newbies on same day.

it is a wage for unskilled manual work.  compare it to ground work jobs etc, and this job is much nicer.

once you start employing and expanding, if that's your aim to have a couple of staff...  things get real expensive if you dont keep a really tight handle on them.  if you start someone too high, you cant increase their wage ever, and if you drop it down they will leave.

[William McCafferty]

Yeah he is on a good deal... But I earn from him working for me so I' happy to.

He works for me 3 days a week on a self employed basis... He has other work the other 2 days... Yes, he uses my equipment etc so it's a bit of a grey area, is he actually employed or not etc...

I wouldn check on this grey area, otherwise you might get a rather large demand from the taxman for his paye and Ni.

If he is declared paye, then you will have to pay him hoilday pay as well.

and the final nail for employing started this year, because employers and employees have to start paying into a pension scheme.

At the moment this only effect big companies with hundreds of workers, but its being spread over the next few years to cover every employer and employee in the country.

So start planning for this extra 3% in employing even a part timer.

to overcome your "grey area", because he also works elsewere, this helps but he does use your equipment free of charge, if you charge him to use the van and wfp/ladders then it should take you out of the grey area.

But double check with an accountant and the taxmans helpline.