We are looking to hire another company to contract work. We own a small business doing the work ourselves and looking to add more units to grow the business. We only do short term rental vacation cleanings. We need to know what the average split should be? How does that work financially? A contarcter offered a 60/40 split in their favor and we are providing the linens,toiletries, bag packing ,delivering and stripping the beds. Contractor does just the cleaning. Thoughts?
Angela your videos have been so helpful to me, thank you! I have been going back and forth deciding between hiring an Independent Contractor vs an Employee for quite some time now. I would prefer to hire IC's to save on extra expenses, but I want to be sure not to get into any employee misclassification issues with IRS, and would love your opinion. I would be allowing the staff to choose their own hours/which jobs they accept and follow a simple dress code along with an apron. However the kicker is that I would allow staff to use their own equipment, but give them an option to use my equipment (which is preferred so it can be standardized). What are you thoughts on if this would still qualify as an IC, and if not, how do you handle hiring IC's. Thank you so so much!
If they are staff - they are an employee. Hiring and independent contractor is hiring an outside company who has other clients who uses their own equipment, and wears their own uniforms, and there is no standardization. When you hire an independent contractor - there are no kickers.
Very Important information, do I have my sub contractor fill out a 1099 before they start work or at the end of the year? Do I receive their SS#, Do I receive proof of a EIN and Insurance before they start? And do I pay them immediately after they complete their job or when I pay my employees? Also, can I charge an Independent contractor if they don't show for a job? Thank you so much Angela! !
When working with subcontractors, it's generally recommended to have them fill out a Form W-9 before they start working, which includes their tax information. Requesting proof of an Employer Identification Number (EIN) and insurance coverage is advisable as well. Payment timing can vary based on your agreement, but it's important to establish clear terms. If a subcontractor fails to show up without notice, you may be able to charge them based on your contract. However, it's always wise to consult with a legal or financial professional to ensure compliance with applicable laws and regulations in your jurisdiction. Hope this helps and good luck!
@Angela Brown Cleaning That helped a lot, Angela! Thank you for taking the time to explain this important move for me. Also, just to let you know... your channel inspired me to not only clean professionally but to start my own business! 🙌👏👍 God Bless...
Hi Angela, your videos are extremely useful. You can clearly explain yourself. I'm not sure if you'll even see this; however, I'm moving to a new town with a small population of about 1000 people and including the surrounding cities approximately 15000. My main objective was to create a cleaning business for extra cash flow, the idea of minimal inventory and overhead intrigues me of hiring independent contractors would this be the route to take in the beginning?
A small town opens up a lot of opportunity for extra projects in addition to cleaning that will keep you busy and keep money on the table. These would be things like raking leaves or blowing snow out of the driveway. It could also include odds and end projects. I know in some of our farming communities house cleaners will do side jobs that include canning, or picking apples out of an orchard. The secret is to make a list of seasonal projects that go hand-in-hand with a cleaning business so that while a cleaner is there at a house after the house is clean instead of commuting to another area miles away, they can pick up a couple of side jobs while you’re at the same clients house. Does that make sense?
@@AskAngelaBrown Interesting. Thank you for your in-depth answer! It definitely has me thinking of different possibilities. The goal is for me to get these jobs and hire IC/small businesses to complete them. Therefore, I have time to focus on getting additional jobs and running my Airbnb business. I can see it growing into an "empire" in the long, but the goal is extra cash flow and understanding the business in the short to fund future investments in the area. If the long-term plan is to build an empire, should I consider employees in the beginning? or IC's is the way to go? (also strapped for cash right now)
The independent contractor vs. employee classification varies by location and industry. Here's helpful resource: www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-defined
Typically, the company has insurance to cover work-related accidents in a company car. You will also buy general liability insurance for your employee to clean in client's homes. You will probably also have a bonding rider (insurance policy) for them against theft. I recommend a negligent employee rider that covers them if they damage client's property on accident. And you will have a worker's compensation insurance in the event they get injured on the job.
@@AskAngelaBrown Thank you . I have liability and Bond in place along with workers comp. However I do not have company cars so employee’s will drive their own vehicle. What is my obligation in that case?
Hi Angela, I love your videos! I was wondering if you have any suggestions about my situation. I signed a contract with a company as an independent contractor. He treats us like employees, and now demands we sign an "independent contractor manual" that is actually an employee manual/ contract. And he still 1099s us. He told us (at one of our mandatory meetings) that we will be bound by it. I have been putting it off while trying to replace the clients I have through him. I won't sign it, and now he said he won't give paychecks out to those who do not sign it. Do you know of anyone I can contact if I do not get my paycheck or how I should handle the situation? I cannot replace all his clients and be free from him in one week. :( I love how you explained how you handle these types of relationships, and wish he was as ethical as you. Thank you for all of your info and videos!!!
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Take a look at this playlist of similar videos we made on hiring employees. More great info.
ruclips.net/p/PLh1fKdNH3piTG9_0Amc9Qk4sU9MxdTbaw
You provide some of the best information. Thank you
You're welcome, thanks for watching!
Very helpful! Thank you always!
So glad it was helpful, thanks for watching!
I would love to hear more on this topic and more stories.
Take a look at this playlist of similar videos we made and more great info.
ruclips.net/p/PLh1fKdNH3piTG9_0Amc9Qk4sU9MxdTbaw
You are amazing!!!! I’m so glad I found your channel ❤️
Thank you so much, I appreciate your kind words! 😊
Very awesome information !!! Thank you
You're welcome, thanks for watching!
We are looking to hire another company to contract work. We own a small business doing the work ourselves and looking to add more units to grow the business. We only do short term rental vacation cleanings. We need to know what the average split should be? How does that work financially? A contarcter offered a 60/40 split in their favor and we are providing the linens,toiletries, bag packing ,delivering and stripping the beds. Contractor does just the cleaning. Thoughts?
I just replied to this in a previous post.
Angela your videos have been so helpful to me, thank you! I have been going back and forth deciding between hiring an Independent Contractor vs an Employee for quite some time now. I would prefer to hire IC's to save on extra expenses, but I want to be sure not to get into any employee misclassification issues with IRS, and would love your opinion. I would be allowing the staff to choose their own hours/which jobs they accept and follow a simple dress code along with an apron. However the kicker is that I would allow staff to use their own equipment, but give them an option to use my equipment (which is preferred so it can be standardized). What are you thoughts on if this would still qualify as an IC, and if not, how do you handle hiring IC's. Thank you so so much!
If they are staff - they are an employee. Hiring and independent contractor is hiring an outside company who has other clients who uses their own equipment, and wears their own uniforms, and there is no standardization. When you hire an independent contractor - there are no kickers.
Very Important information, do I have my sub contractor fill out a 1099 before they start work or at the end of the year? Do I receive their SS#, Do I receive proof of a EIN and Insurance before they start? And do I pay them immediately after they complete their job or when I pay my employees? Also, can I charge an Independent contractor if they don't show for a job? Thank you so much Angela! !
When working with subcontractors, it's generally recommended to have them fill out a Form W-9 before they start working, which includes their tax information. Requesting proof of an Employer Identification Number (EIN) and insurance coverage is advisable as well. Payment timing can vary based on your agreement, but it's important to establish clear terms. If a subcontractor fails to show up without notice, you may be able to charge them based on your contract. However, it's always wise to consult with a legal or financial professional to ensure compliance with applicable laws and regulations in your jurisdiction. Hope this helps and good luck!
@Angela Brown Cleaning That helped a lot, Angela! Thank you for taking the time to explain this important move for me. Also, just to let you know... your channel inspired me to not only clean professionally but to start my own business! 🙌👏👍 God Bless...
Hi Angela, your videos are extremely useful. You can clearly explain yourself. I'm not sure if you'll even see this; however, I'm moving to a new town with a small population of about 1000 people and including the surrounding cities approximately 15000. My main objective was to create a cleaning business for extra cash flow, the idea of minimal inventory and overhead intrigues me of hiring independent contractors would this be the route to take in the beginning?
A small town opens up a lot of opportunity for extra projects in addition to cleaning that will keep you busy and keep money on the table. These would be things like raking leaves or blowing snow out of the driveway. It could also include odds and end projects. I know in some of our farming communities house cleaners will do side jobs that include canning, or picking apples out of an orchard. The secret is to make a list of seasonal projects that go hand-in-hand with a cleaning business so that while a cleaner is there at a house after the house is clean instead of commuting to another area miles away, they can pick up a couple of side jobs while you’re at the same clients house. Does that make sense?
@@AskAngelaBrown Interesting. Thank you for your in-depth answer! It definitely has me thinking of different possibilities. The goal is for me to get these jobs and hire IC/small businesses to complete them. Therefore, I have time to focus on getting additional jobs and running my Airbnb business. I can see it growing into an "empire" in the long, but the goal is extra cash flow and understanding the business in the short to fund future investments in the area.
If the long-term plan is to build an empire, should I consider employees in the beginning? or IC's is the way to go? (also strapped for cash right now)
what are the independent contractor rules labor laws cleaning new rules
The independent contractor vs. employee classification varies by location and industry. Here's helpful resource: www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-defined
So if you hire a cleaner as an employee do you have to provide car insurance for them?
Typically, the company has insurance to cover work-related accidents in a company car. You will also buy general liability insurance for your employee to clean in client's homes. You will probably also have a bonding rider (insurance policy) for them against theft. I recommend a negligent employee rider that covers them if they damage client's property on accident. And you will have a worker's compensation insurance in the event they get injured on the job.
@@AskAngelaBrown Thank you . I have liability and Bond in place along with workers comp. However I do not have company cars so employee’s will drive their own vehicle. What is my obligation in that case?
Hi Angela, I love your videos! I was wondering if you have any suggestions about my situation. I signed a contract with a company as an independent contractor. He treats us like employees, and now demands we sign an "independent contractor manual" that is actually an employee manual/ contract. And he still 1099s us. He told us (at one of our mandatory meetings) that we will be bound by it. I have been putting it off while trying to replace the clients I have through him. I won't sign it, and now he said he won't give paychecks out to those who do not sign it. Do you know of anyone I can contact if I do not get my paycheck or how I should handle the situation? I cannot replace all his clients and be free from him in one week. :( I love how you explained how you handle these types of relationships, and wish he was as ethical as you. Thank you for all of your info and videos!!!
As independent housekeeper make a schedule and give your invoice to the other business or customer.
I really hope I get an answer for this one, if I run my business with Ind. Contractors do I have to collect taxes from customers ?
Check out this playlist on taxes: ruclips.net/p/PLh1fKdNH3piS1RSLBwlQhmizPTrIepybP