Converting independent contractors to employees

searcher profile

April 25, 2023

by a searcher in Aliso Viejo, CA, USA

Any suggestions for estimating cost of converting independent contractors to employees?

Looking at family cleaning business with labor force mostly independent contractors. Looking to professionalise and bring everything up to California labor code.

How would you estimate the per worker cost of converting min wage contractor to min wage employee?

0
3
33
Replies
3
commentor profile
Reply by a searcher
in Aliso Viejo, CA, USA
Looks like employees cost about 30% more than contractors: https://smallbusiness.chron.com/costs-employee-vs-independent-contractor-1077.html
commentor profile
Reply by an intermediary
from Harvard University in San Diego, CA, USA
30 to 40% increase in cost at least once you factor in worker's comp, additional GL insurance, commercial vehicle insurance, adjusting their salaries, tax burden, and payroll fees. It is a BIG lift with BIG penalties especially in California.
commentor profile
+1 more reply.
Join the discussion