I will try to address those three inquiries in this post Washh :
They can claim up to 54.5 cents a mile as a deduction on their federal tax returns when using their own vehicle. So, I was asking if they are claiming this and getting that 5% from you also. If you continue to pay them 5% it needs to go under regular expenses rather than payroll ( you called them employees right - NOT Subs ). If not you are paying payroll taxes on the 5% in addition to the already base pay of 30%. Alternately, you can pay the mileage of 54.5 cents weekly and then at the end of the year take that as a deduction on your taxes. If I were an employee and I was doing $300.00 a day and getting a 5% gas rate from you - that would only be $15.00. That means that anything I drive over 22 miles and I am better taking the 54.5 cents a mile. 30 miles x 54.5 cents = $16.35 …see what I mean ?
You asked if I pay 37.5% per job or per total each day. We Pay on the total but it’s the same either way. I arrived at $45.00 for my company as a min baseline gross for total day average on assuming that they will be able to do $1.00 worth of work per minute when at the customers actually cleaning the glass. This is not unusual to be able to do $1.00 per minute ( $54.00 job can be done in 54 minutes ). So…Are your jobs really overpriced or are the workers not efficient. I ALWAYS focus on the latter first as a way to hit our target and " Fix the problem ". If we are doing the job efficiently at the $1.00 per minute pace and the job is only netting say .60 per minute - then the price needs raised.
The 37.5 % that I pay is based on this formula and our added total payoll taxes of 18% for every $1.00 of payroll. 37.5% x 18% = 44.25 % total payroll cost. My non payroll expenses are at about 15-20% annually so that leaves pretax owner cashflow of about 35-40 %.
If we train them sufficiently on route work they will make a " minimum " of $16.80 hour average from start to finish of day - 8 hours = $134.40 ( It means they have done $358.00 worth of work ).
Have I helped clear any of that up Washh ?