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Caleb Morley

  • Posts: 376
Paying employees a percentage
« on: November 04, 2018, 02:15:33 pm »
This was partly mentioned on another thread but I can't find it.

Those that pay a percentage of daily turnover to employees - what percentage do you pay?

Also do you pay them a base rate too?

Cheers

jo5hm4n

  • Posts: 948
Re: Paying employees a percentage
« Reply #1 on: November 04, 2018, 04:20:27 pm »
I pay a basic wage which is a legal requirement.  Their pay is based on percentage of turnover, so the difference between what they should earn based on turnover and the basic pay is the difference i pay as a bonus each day.


Caleb Morley

  • Posts: 376
Re: Paying employees a percentage
« Reply #2 on: November 04, 2018, 04:26:31 pm »
Any chance of you letting me know the percentage you pay?

Crystal-clear

  • Posts: 3029
Re: Paying employees a percentage
« Reply #3 on: November 04, 2018, 04:26:43 pm »
yo buddy
if you are offering them an employment contract you are legally required to pay them the national living wage anything extra is up to you and you could make the difference up in % turn over.

This tho comes with liability's sickness pension NI contributions holiday and a whole load of other stuff which can be very messy hence why down this route the money tends to be lower due to the security and likewise burdens both employee and employer both have.

so its best to hire an accountant with a HR package and definitely seek advice from a professional along with a vetted contract that suites you.

if you intend to offer your work on a sub contracting basis non of the above apply including the national minimum wage. its unlikely you'll find anyone decent for under £120 a day these days so work your % out based on that figure that they can earn or more i think thats the key answer.doesnt matter which % if 60% works out to £120 for them its reasonable.

This method of hiring is fine if you need them as and when or if they own there own van and tools.but as said before it becomes a grey area should they rely on your income and are basically working full time and your dictating everything how its done technically its an argument that they're actually employed i would say its sensible to figure out if you have a big workload for someone then act accordingly

i know a little of the basics but i would in turn also defo seek professional advice if i was in your boat
best of luck.


Caleb Morley

  • Posts: 376
Re: Paying employees a percentage
« Reply #4 on: November 04, 2018, 04:31:01 pm »
I currently just pay a flat day rate. Just trying to work out if an hourly rate + percentage would be better. The two that work for me aren't employed, they sub to me. Both have other work.

Crystal-clear

  • Posts: 3029
Re: Paying employees a percentage
« Reply #5 on: November 04, 2018, 04:42:31 pm »
I currently just pay a flat day rate. Just trying to work out if an hourly rate + percentage would be better. The two that work for me aren't employed, they sub to me. Both have other work.

cool i would say % is much better then a flat rate in your position. figure out what you can clean a day working average pace then figure out what £120 of that is could be a starting point?

Stoots

  • Posts: 6212
Re: Paying employees a percentage
« Reply #6 on: November 04, 2018, 04:46:15 pm »
why not just pay an hourly rate then a bonus based on a target amount