Hourly Rate vs Per Job Rate

[Bryce Davis]

I am in the process of hiring my own team. I used to have GC's or subs quote per job but I would thought I could save some money by paying a crew a hourly rate.

Example:

2 Do Everything Employees

1 Electrician

1 Plumber

What has been your experience? Do you have any advice?

Bryce

[J Scott]

Okay, we're talking about the same thing then. To avoid confusion, anyone getting a 1099 is an independent contractor (or sub-contractor or just a contractor) and anyone who is on your payroll (and you withhold taxes from) is an employee.

Keep in mind that employee versus contractor is not something you can define any way you want. In other words, just because you decide to pay someone as a 1099 doesn't mean the IRS won't consider them an employee.

Read this article I wrote a couple years ago:

http://www.biggerpockets.com/renewsblog/2010/05/26/are-you-sure-your-independent-contractors-really-are/