489: Construction Company Employee Compensation And A Note On Taxes

<h1 style="text-align: center;"><span style= "color: #0000ff;"><strong>This Podcast Is Episode Number 489, And It's About Construction Company Employee Compensation And A Note On Taxes</strong></span></h1> <div>There are a few different methods that employers use to pay their employees, and while they may have similarities, they each also have implications for your construction business and employees. On top of that, there may be a blended model at play, in which you offer two types of compensation at once, such as a wage and bonuses. </div> <div> </div> <div>When paying employees, laws and the IRS have made the payroll function a time-consuming nightmare for the small business owner.</div> <div> </div> <div>Small business owners spend an average of eight hours monthly performing payroll functions. That's 12 full business days a year that could be spent generating sales, prospecting for new business opportunities, improving products or services, or servicing customers.</div> <div> </div> <div> <p><span data-preserver-spaces="true">How you pay your construction employees will impact your finances and your reporting requirements. Read on to learn the differences between the main ways of earning money in the workplace.</span></p> <p style="font-weight: bold;"><span style= "color: #0600ff;">Wages</span></p> <p><span data-preserver-spaces="true">Most entry-level positions offer an hourly wage in exchange for work. An hourly wage might be $20. So if the employee works 8 hours that day, they would be compensated </span><strong><span data-preserver-spaces= "true">$160</span></strong><span data-preserver-spaces= "true"> for that day.</span></p> <p><span data-preserver-spaces="true">The minimums set by law vary depending on where the business operates. Typically, the minimum wage is directly related to the cost of living in that area. </span></p> <p><span data-preserver-spaces="true">Generally, a set number of hours can be worked in a week, and working beyond that maximum entitles the employee to a higher pay rate. There m