How do I hire people for a cleaning account?

[st24769]

Good evening.

I have a chance to take over as the new cleaning service at the building I work at. I know the owner and I also know what they are currently paying each month. They are interested in another quote and I am confident I will be able to land it. I am having a hard time understanding how to about it though. Meaning hiring people to clean it. I have my an LLC and have one cleaning account that I clean myself weekly, but this building would be Monday-Friday and would take about 3-4 hours each night.

Can someone please help explain the best process I should take on going forward with this potential account? When I hire people (2) do they need to be under my LLC? Can it be 1099 or is W-2 required? Again I am very vanilla at this but really wanting to understand because this a great opportunity that I don't want to pass up on. I apologize if I am not asking the right questions, but any help is much appreciated. Thank you,

 

[sabina42]

@st24769 If it's 3 to 4 hours a night just clean it your self

 

[st24769]

@sabina42 I already work 9-5 and the current cleaning service has two guys cleaning it. It’s mainly restrooms (10 total)

 

[kabriana]

@st24769 It’s the same process when you were hired for the job. You need to open a bank account, get a EIN from the IRS, place an ad to hire people and interview those that respond. You’ll need workers comp, disability and liability insurance. Don’t forget to calculate all those expenses into the bid.

 

[st24769]

@kabriana I have a bank account and EIN. But would these employees be sub contractors?

 

[kabriana]

@st24769 It's been discussed here a ton if you want to search it. The IRS determines this.

Basically subs are autonomous, you have no control over them, they have their own insurance, tools and pay their own taxes.

Employees you have control over, you provide their tools and equipment, insurance and pay some of their taxes.

 

[eaglescout88]

@st24769 r/cleaning_business

 

[pastorpontibus]

@st24769 Just to be clear. You have an LLC that you operate in this building doing something other than cleaning? If you have no experience, what makes you think you can do it better than the existing provider? Being “cheaper” should not be a goal, especially when you don’t know the business.
The short answer is, if you plan on making a profit providing cleaning services, meaning “you” are managing the process, your workers need to be employees. Otherwise, if you’re just “connecting” a cleaning business with a job, you don’t provide much value.

 

[st24769]

@pastorpontibus No I have an LLC for cleaning. I clean on the side. My main 9-5 job is in the building I would like to take over. So I guess my question should of been would it be better to hire subcontractors rather than w2 employees.

 

[pastorpontibus]

@st24769 How you’re communicating this is weird but since you’ve been posting here with other questions, I’ll assume you are building a cleaning business. In that case I answered you. You must hire w2 employees to provide cleaning services. This is double important if you are also cleaning.

 

[st24769]

@pastorpontibus I sent you a dm.

 

[pastorpontibus]

@st24769 From DM, so that others can see.

HeyItsJake458:25 AM Hey, sorry I wasn't clear enough. So are you saying they have to be W2 employees or can I sub it out? I only have one account and this would be my second if I land it which is why I think subbing it out would be best.HeyItsJake458:34 AMI really want this account but just need a better understanding how to manage an account with two employees and if they should be 1099 or W2

1. If you have a cleaning business, individuals that you "hire" MUST be W2 employees. You're a cleaning business and therefore the IRS considers that work integral to your business.
2. You could "sub out" but that's not really what you're doing. What you're actually doing is establishing a business to business relationship with another cleaning company. They will handle all cleaning operations and bill you. You would then bill the customer. In this case, you're just managing a vendor for your customer. Additionally, you're probably not going to make any money because any profit is going to the company actually doing the work.

 

[st24769]

@pastorpontibus Okay if that's the case then what's the process of setting up W2 employees? Is there certain paperwork that I need to file for my LLC?

 

[pastorpontibus]

@st24769 It's not about your LLC at that point. You need to look into the employment requirements for your state. There may be workers compensation requirements. There will be unemployment insurance requirements. For federal taxes, the IRS has an I9 form0 (citizenship verification) and W4 for (FICA deductions). There my be state forms as well. Then you need a way to handle payroll. An accounting tool like QuickBooks (there are others) can help you with the correct withholding amounts and issuing checks, including direct deposit. If you need to fast track this, I'd suggest you find an accounting firm ASAP to fill you in on your specific needs and maybe handle this for you.

 

[robinrocks]

@st24769 There is no fast way to learn all the nuances of running payroll via w-2 but it’s not that complicated either; just takes attention to detail and bonus points for having an experienced accountant or business owner you can reach out to to ask clarifying questions.

Option 1: Call Paychex and they will be more than happy to help you get payroll all setup. Your state and city will determine how taxes can be paid via payroll and what needs to be handled by you directly.

Option 2: Reach out to an experienced accountant or bookkeeper who can set it up for you and make sure all the bookkeeping and taxes are handled correctly.

Option 3: Pay a little more and either hire a temp hiring agency or Paychex’s PEO service and they will handle all the payroll and filings for you.

(I’m not affiliated with Paychex; just familiar with their platform.)

 

[chickentacossh]

@st24769 I’m in the exact same situation at the exact same point as you. Days of the week and hours to clean