Welcome to the Small Business Ideas Forum! We are a community of over 100,000 small business folks with over 163,000 posts for you to browse. We pride ourselves on being the friendliest forum you will find and we'd love to have you as a member of our community. Please take a moment and register for a free account. If you need any help, please contact Chris Logan.

Small Business Ideas Forum

Small Business Ideas Forum

A friendly place to share small business ideas and knowledge, ask questions, find help and encourage others that are involved in the small business industry. Topics include small business marketing, generating revenue and small business computing.

Go Back   Small Business Ideas Forum > Generating Revenue, Insurance, Taxes, Etc. > Small Business Finance
Register Search Today's Posts Mark Forums Read

Thread Tools
Old 11th July 2010, 07:26 PM   #1
CloudTenOwner's Avatar

Join Date: Jul 2010
Location: I live in the Lone Star State. My actual location will only go out to potential clients.
Posts: 11
Send a message via Yahoo to CloudTenOwner
Default Small, Out-of-home Pastry Shop. Employee Pay?

So, I operate a small, out of home pastry business, called "Cloud Ten Pastries", and, I was wondering: My little sister, cousins and friends help out. Now, I feel bad about taking this help without pay, so, how much should I pay them?

While I do all of the cooking, they do most of the janitorial work and some of the driving.

Any ideas? Per hour please.

Last edited by CloudTenOwner; 11th July 2010 at 10:06 PM.
CloudTenOwner is offline   Reply With Quote
Register or log in to remove this ad.
Old 12th July 2010, 08:55 AM   #2

Join Date: May 2009
Location: Charlotte, NC
Posts: 45

That's more of a subjective matter which depends on the dynamics of the relationships.

So thus far they've been happy to pitch in for no compensation? It sounds like then you need some 'pay rate' that (a) will keep you from feeling like you're taking ongoing advantage of their friendships; (b) will similarly prevent them from thinking that you're making an undue imposition on their kindness; and (c) isn't so large that it makes it no longer worth your while to keep running the biz.

While (c) can easily be reduced to a calculation, (a) and (b) are subjective calls that depend on the nature of the relationships, the situation, and the people involved.

As a start, though, you might place a few phone calls around to see what's the going rate in your area for people who are doing similar work.

Couple of tangent thoughts, though, that you'll want to keep in mind (although not directly addressing your question). For one, you mentioned that some of your worker bees are doing some driving (deliveries, I suppose?). If they're using their own vehicles, you'll want to add a mileage or gas reimbursement to their hourly pay.

Also, whenever you're paying for personal services in a business, there are some employee / independent contractor issues that unavoidably become involved. Tax withholdings, W-2s or 1099s, some paperwork, etc. That's another topic, and you should bounce it off of an accountant who's got the expertise in this arena.

Best success wishes for your biz (great name, BTW!) Cheers!

...it was early and I was full of no coffee...
ArcSine is offline   Reply With Quote
Old 25th July 2010, 01:11 PM   #3
Beth_SC's Avatar

Join Date: Jul 2010
Location: Greenville, SC
Posts: 10
Send a message via Yahoo to Beth_SC

Just a further note on what was said in the other post, the IRS is starting to come down hard on employers that use independant contractors. In fact, there is a bill in Congress right now that if it passes, every single business you do business with will require a 1099. That means, if you buy something at Office Depot you would have to send them a 1099. It is completely crazy and HOPEFULLY it won't pass, because it will be a nightmare.

Also, if the person working for you as a contractor is working at your place of business watch out. If you are telling them the hours to work and how to do the work, then they are your employees and you have no choice but to pay payroll and unemployment taxes.

Best of luck,


Beth_SC is offline   Reply With Quote


Similar Threads
Thread Thread Starter Forum Replies Last Post
Franchise: Small Boutique Selling DIY Home Products Ms. Business What Type of Business Should I Start? 1 29th March 2010 02:09 AM
The Power Of Small Talk timandren General Online Marketing Information 9 11th December 2009 07:25 AM
Searching for small home base business ideas V. Stewart What Type of Business Should I Start? 6 28th July 2006 12:56 PM

Thread Tools

Get Updates
RSS Feeds:
RSS Feed for Small Business Finance RSS for this Category Only: Small Business Finance

RSS Feed for Small Business Ideas Forum RSS for Entire Forum
Forum Rules

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Small Business Ideas Forum

At Your Business - Small Business Directory
Free Business Forms - Prewritten Documents
Search Engine Guide
Small business guide to search marketing

Small Business Brief
Fetching the Best Small Business Info

Used Values - Free Links
Blue Book

All times are GMT -5. The time now is 05:57 PM.

Powered by vBulletin® Version 3.7.3
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Copyright 2004 - 2018 - Privacy