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Hiring


#1

Hi Everybody,

I’m Fred Rossman, I’ve been lurking for a month or so. I now have
a question that I need feedback on.

My son and I opened a store a little over a year ago. We now find
ourselves overwhelmed with work. The repairs and custom are
flooding in. We are looking to hire a jeweler to help us. We have
our eye on a man with the experiance we need. We have checked out
his work and like what he can do. Were not sure just how to go
about paying him and just how to set this up. He will also be
helping with custom work. We would like to hear from others on
what would be fair for both store owners and jewelers. I am open
to questions and will appricate any comments anyone has.

I’ve been making jewelry for 23 years. I did almost all silver
for about 12 years and then started doing goldsmithing and
diamond setting, which I have been doing now for 11 years. I’ve
worked out of back rooms and basements but enjoy having a store.
It’s a whole new ball game now. Thank you Fred Rossman


#2

Fred, The best way to make the hiring cost effective would be to
pay him on a per job basis…give him half of the retail cost of
the job. If he sizes a ring and you charge the customer $15…he
gets $7.50. This way he would essentially be running his own
business through you…which would save you alot of tax paperwork
etc…This has been the method of payment to several jewelers
that I have worked with …hope it helps…

Susan


#3

Fred, The best way to make the hiring cost effective would be to
pay him on a per job basis…give him half of the retail cost of
the job. If he sizes a ring and you charge the customer $15…he
gets $7.50. This way he would essentially be running his own
business through you…which would save you alot of tax paperwork
etc…This has been the method of payment to several jewelers
that I have worked with …hope it helps…

Make sure he meets the IRS definition of a subcontractor and not
that of an employee. If he works hours you demand doing things
your way for fees you set he is definitely your employee. I donAEt
know exactly where the lines are drawn, but unless you want to be
responsible for his taxes you have to meet the IRSAEs criteria.

Dick Caverly


#4
Were not sure just how to go about paying him and just how to
set this up. 

I have six goldsmiths in my shop, two are part-time. Basic
sizing and repair people make about $10.00 per hour. Sizing,
repair, moderatly difficult fabrication, simple setting make
about $12.00 per hour. More complicated fabrication, wax carving,
setting all but fancies make about $14.00-$15.00 per hour. People
who can do almost anything $17.00-$20.00 per hour. All get
vacation and health insurance, plus other perks. Not everyone
fits neatly into the listed catagories. Hope this helps. The
other option is to have him bill you for his work. I would not
ever do that personally.

Mark P.


#5

Dick,

In Virginia where I am (I subcontract at a local jewelry store
part time) the laws are something like this…

The subcontractor has to have his or her own business liscense,
have thier own tools, supply thier own material and findings,
and actually lease the bench space. We find ways to get around
some of this . The store issues a form 1099 at the end of the
year and the subcontractor is responsible for paying thier own
income taxes, insurance, ect… On the flip side, the
subcontractor sets thier own rate scale for repairs, custom
work, ect… than the store decides to double it 2.5 it or
whatever. I’ve always been more happy doing this than if I had
to work by the hour, and I can have my own business with my own
private customers and do galleries and shows without a legal
conflict of interest.

Wendy Newman


#6

I want to thank everybody who responded to the hiring question.
It really helped us. We will do it just as many have, myself
included. The person we bring in will be self employed. I liked
that setup myself. Fred Rossman