How much should I charge myself out?
So I started my own business to subcontract under my dad's business as a carpenter. He paid me 25$/hour, no benefits, no overtime.
He suggested I sub under him because sometimes we don't have enough work or there's a transition between jobs.
So I'm sort of stuck trying to get by for a couple of weeks, meanwhile I could have done some odds jobs under my own name, and he gets that.
So I got insurance, license, cards, etc. And he asked me what I wanted to be paid as a sub, I said I would sit on it and we can discuss it later and he was happy (we have a good relationship).
So since he's not paying for employment insurance on me, or tools, gas, my vehicle insurance. And all the other things an owner would typically have to do, in construction. I assume my rate would go up?
We are in commercial construction, I'm a carpenter who has been framing, forming, installer, finishing etc for 8 years with my dad.
Would 30$/ hour be more appropriate ? Thoughts? Now I'll have to pay for my own vehicle, gas, insurance, tools, maintenance, etc etc
I've heard of not ticketed subs charging 50 or more per hour and that's typical.
- WhoLv 712 months ago
your question dont make sense
as a subcontractor you are your own business not under your father s
You can do work for him as a subcontractor and be paid - but that dont make you part of his business
"He suggested I sub under him because sometimes we don t have enough work " - there is no "we"
HE might not have enough work to subcontract any to you . HE is suggesting you become a subcontractor so that HE dont have to lay you off or pay you any compensation when he dont have any work for you
All HE does is subcontract work to you as he sees fit - that could be for a period of time, or it could be for a specific job - when that period ends or the job ends then its up to him it he wants to subcontract to you again. If he dont then its up to you to find somebody else to do subcontract work for
As an employee 25 would be fine- but nowhere near enough as a subcontractor.
Course you have a good relationship - he is paying you peanuts so that leaves more money for him
If you know anybody who does subcontract work as a carpenter try asking them how much they get paid
- EvaLv 512 months ago
Remember that you will also have self employment and income taxes to pay. If he's paying you $25 an hour, you'll be lucky to have $19 after taxes. That's not considering all your other expenses. You should be getting paid at least $40 an hour as a sub.
- BLv 712 months ago
as a sub, you have many tax advantages, you probably could set yourself up as self employed (which you are, since you provide your own vehicle, gas, insurance, etc) and establish (eventually) an SEP IRA
that being said, you know and your dad knows your worth more than $25. I would start out low (not over $45) and see how he takes it. bill him $45 an hour, he probably charges the customers $75/hr.
- A HunchLv 712 months ago
So dad wants to get away from paying for your workers comp insurance and payroll taxes? What a great guy :-(
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- SlumlordLv 712 months ago
My advice is to simply take your best guess, add 15% and see what he says. Let him talk you down that 20% if needed but try to stay at or above you best guess unless he can show you that you really aren't worth that much.
- DEBSLv 712 months ago
As a family member, I'd talk freely with him about how much he typically pays his subs.
There's no way someone here can say $5 an hour more is good or bad. Figure out what your added expenses are. Then estimate how much additional income you need just to break even. Know that if you don't have work, you still have those fixed expenses so take that into account.
Finally, figure out what other subs in your area get paid for similar work. This is where speaking to you dad, as a son as opposed to the owner of a business you are trying to work for, comes into play. Do other research as well, but if your dad isn't able to separate his business side from his fatherly advice then this is not going to end well.
- Anonymous12 months ago
Why are you asking complete strangers when it's up to your dad to say $30 is appropriate or not? So our input makes no difference whatsoever!!
- PearlLv 712 months ago
i would ask your dad about it
- martinLv 712 months ago
Although $30 is more appropriate, you have to stick to what feels right to the guy who's paying you. In time, if things work out, you'll get a raise. But if you don't, and you really can't make ends meet, you'll have to ask for a raise.