Girl who dances in a cage (cagekitten) wrote,
Girl who dances in a cage

still figuring out this whole business thing

I'm discovering through some research that hiring people on a contractor basis is not a wise option based on the nature of the relationship between my instructors and my clients. If my employees were doing work for me, it would be more reasonable. But because my employees will work directly with my clients, hiring them as actual employees rather than contractors is the best choice.

I found out today that payroll services don't cost as much as I thought. I found an online payroll service for about $80 a month. But they also told me how much I have to pay as far as taxes and such. This is what I found out:

State Unemployment: 2%
Social Security 6.2%
Medicare 1.45%
Federal Unemployment .8%

If my math is right, I'll be paying 10.45% of my employees wages. My goal is to pay my instructors $50 per hour (keep in mind most of them will only work about 2 to 4 hours a week). That means I'll have to pay $5.23 per hour to various state and federal agencies. The question is, do I lower their pay to $45 per hour to make up for this or do I just take a loss of $5 for every hour that some one works for me??

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