My business uses primarily W2 employees. I live in california so our restrictions for classifications is pretty gnarly but to try and think of it in terms of other places:
Advantages of W2s
- You can build more of a brand. Maybe the subs are willing to fly your flag, maybe not. But there's always the possibility of them advertising for themselves on your job which is no bueno.
- Scheduling - I feel like with W2s you have more of an ability to say they will show up at a specific time and that can happen (or you have more control over it). A sub can be getting there in their time. Now maybe that's just finding the right ones, but I'll have subs say they'll be there at 8am then show up at 10. They are good guys and do good work, just can't 100% rely on the start time which I think is kind of important in building a brand
- If you look at big successful companies - A1 garage door, large plumbing companies in your area, etc - all their people are W2. That should tell you something. Can you make a lot of money just doing subs? ya probably. If that's your goal, then do that. If you ever want to sell your company, I don't think that's the best option
Advantage of Subs
- completely transfer risk/ isolate cost. That's pretty nice
- Less training cost
- overall probably costs less I think
