Employee Wages

Baking By thecookiefairy Updated 9 Feb 2014 , 8:00pm by liz at sugar

thecookiefairy Posted 5 Feb 2014 , 1:33am
post #1 of 9

AI have a decorative cookie business and in need of some assistance. I am unsure as how much to pay an assistant. Any advice? Should it be a percentage of the hourly rate I charge or based on production?

8 replies
liz at sugar Posted 5 Feb 2014 , 1:43am
post #2 of 9

Unless your new helper is an independent contractor, you will need to follow your state minimum wage laws.  To be an independent contractor they must be able to do the work on their own schedule, in a location of their choice, with their tools.  If this person comes to your kitchen or home, they will most likely be considered an employee.  You would also be responsible for state and federal taxes, social security and medicare.

 

What state are you in?  Maybe someone from your state that has employees can chime in. :)

 

Liz

thecookiefairy Posted 5 Feb 2014 , 2:38am
post #3 of 9

ALiz, Thank you for taking the time to respond. So, it is more complicated than I realized!

liz at sugar Posted 5 Feb 2014 , 3:19am
post #4 of 9

You are welcome!  Have you thought about hiring household help (cleaning/childcare/lawncare) to alleviate some of your household tasks, so you can free up more time and handle the cookies by yourself?  That would be my first suggestion for anyone who is feeling overwhelmed with the amount of work they are facing.  It is much easier to hire that kind of help vs. getting into all the paperwork and regulations involved in hiring an employee. :)

 

Have a great night!

 

Liz

thecookiefairy Posted 7 Feb 2014 , 11:13pm
post #5 of 9

AYes, I already have all that! I have enough cookie orders for two businesses!

liz at sugar Posted 8 Feb 2014 , 4:40am
post #6 of 9

Quote:

Originally Posted by thecookiefairy 

Yes, I already have all that! I have enough cookie orders for two businesses!

 

Well that is great!  If you are ready to dive in with an employee, I would suggest talking to an accountant, and using an online service like Intuit Payroll for your payroll checks.  You decide how often you want to pay your employees, enter their hours, and the program figures all employment taxes, reminds you when/how to submit state and federal payroll taxes, along with state and federal unemployment.  It sends reminders on when to file quarterly and yearly reports.  The fee is a sliding scale depending on how many employees you have, usually between $30 and $75 per month.  That is much less than an accountant would charge you each month, and it is pretty easy to manage.

 


Good luck!

 

Liz

thecookiefairy Posted 9 Feb 2014 , 3:37pm
post #7 of 9

AGreat suggestions. I am just tryk g tk figure out how much to pay!!!!!

liz at sugar Posted 9 Feb 2014 , 7:58pm
post #8 of 9

Well, how much do you pay yourself an hour?  Create a scale that goes from dishwasher up to baker up to skilled decorator.

 

So the bottom of the scale would be minimum wage - you could start a dishwasher there.

 

Move up some for the next skilled position on your list - probably kitchen prep.

 

Move up some more for detailed decorating.

 

The top of the heap should be your hourly pay, which entails all of those, plus your administrative functions.

 

Liz

liz at sugar Posted 9 Feb 2014 , 8:00pm
post #9 of 9

And you should probably raise your prices if you have enough business to occupy two cookie businesses - if you get every job you bid, your prices are too low.

 

Raise your prices, bring in the same money (or more) and do less work.

 

Liz

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