Forum Discussion
Workers Comp.
I have been working my cleaning business for some time and clients are referring me to friends and family. I have commercial clients as well. I want to higher employees but the fee to get started along with workers comp is a bit much. This keeps me contracting jobs out (w-9). I want to provide jobs for employment but I realize that when take more clients to provide / create jobs, I end up having to do them myself. Help me get off this roller coaster. I want to create jobs and be able to meet payroll for w-2 employees.
3 Replies
Welcome to life as a small business owner :)
I suggest raising your prices and/or mark-up in order to cover these higher costs. Unless you’ve figured that running a sub-contractor model is less costly and more productive.
Thanks for the knowledge. (By the way hire not higher ..lol)
We had to make the jump much sooner then anticipated into being an W2 employer vs a sole operator last year. My suggestion is to find a good CPA and Bookkeeper who can help you navigate some of the requirements as a business owner with employees. We also use Gusto for our payroll and it does a good job at prompting the information we needed to supply to ensure we were ready to pay people correctly. Its alot of work to get set up but once done its pretty automated. Also using something like ChatGPT to provide you a list of things you need to do as a starting point is helpful too.
You will find that as you scale, your operating costs will rise substantially and you will need to raise your prices at the same time.
