Category Archives: Employees

Ask SCORE: Should I work with contractors or hire employees for my small business?

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As your small business grows, you will reach a point when you can’t do everything by yourself. To get the help you need, you can choose to outsource various tasks to independent contractors or hire employees and delegate the work.

To decide which will make the most sense for you and your company, it’s important to understand some of the key differences between working with independent contractors and having employees on staff.

Years ago, I owned a “virtual” marketing services firm. I worked with a group of talented creative people — designers, illustrators, photographers, and others. I asked them to work on projects for my clients, and they often asked me to work on projects for their clients. We all had licensed businesses and we enjoyed working with each other.   Continue reading →

Is it time to hire your first employee? Here’s how to know.

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You’re running your own business, and you’re busier than ever. You don’t want to turn work away, but you’re already spread too thin. So you’ve started to wonder: Is it time to hire your first employee?

Becoming an employer is a big decision. You don’t want to hire staff unless it’s absolutely necessary.  But if you’re too swamped to keep up, your work will suffer, and you’ll lose the solid customer base you’ve worked so hard to build.

How to know when it’s time to hire.

Becoming a boss is a great idea if your business has grown enough to justify it. Make sure you’re hiring someone for the right reasons.  Continue reading →

New overtime rules to affect businesses with annual gross sales of $500,000 or more.

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According to Julie Tappero of West Sound Workforce,  4.1 million more workers in the U.S. will become eligible for overtime pay as of December 1, according to the Department of Labor. Of those, 76,000 workers will be in the state of Washington.

It’s estimated that this change will result in an extra $1.2 billion a year in earnings for workers. The reason for this is that the salary threshold for overtime exemption under the Fair Labor Standards Act (FLSA) is more than doubling, from $455 a week to $913 per week. This change will affect almost every business in the country.

Read more at the Kitsap Peninsula Business Journal website.

Will your small business have employees?

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Washington State’s Department of Labor & Industries answers the top 20 small business questions. For example:

  1. I’m hiring employees for the first time. What do I need to do?
  2. Can I just hire independent contractors? They’re easier than employees.
  3. Which government permits, licenses and tax registrations do I need?
  4. I own a business. Am I required to have workers’ comp coverage on myself?
  5. What can I deduct from my employee’s paycheck?
  6. What do I do if I can’t pay my workers’ compensation bill?

You will find the answers here.

What you need to know before you hire your first employee.

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If you’re thinking about hiring your first employee, you may be feeling so thinly stretched that you want to fill out paperwork and have someone start right away. That’s understandable, since adding staff to your small business can increase your ability to serve your customers. But if you’re not experienced at hiring and managing employees, it’s easy to make mistakes that can make it harder to serve as a consistent, fair boss.

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Before you place your first classified ad for an employee, here’s what you’ll want to consider about the employer-employee relationship you’re about to embark on.

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Ask SCORE: How much does it cost to hire an employee?

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by Joseph G. Hadzima Jr.

Employment costs fall into several broad categories:

Recruiting Expenses.

Finding technically qualified people who can function effectively in a rapidly growing start up venture is not easy task. In an earlier column we discussed the economic alternatives for head hunting. For this column it suffices for me to remind you to be sure to devote the time to make sure that your hires are as close to perfect “10s” as possible. Anything less will be a drag on your business.

Basic Salary.

Basic salaries vary all over the place depending on the industry and a variety of other factors. There are data that can help you calibrate an appropriate base salary. For example, the Massachusetts Software Council puts out an annual Compensation Survey and there are similar publications in other industries. Be sure to establish rational salary ranges given your growth plans. This means that in most cases there should not be great salary differentials between early hires and later employees- any “risk component” of being an early hire should be made up in the equity compensation component.  Continue reading →