Laundromat owners who hire employees for their stores can use contractors or W-2 employees. It often depends on how many facilities with laundry equipment in Greensboro, NC, they own, if they have a lot of employees, and if those employees work full-time or part-time.
A laundromat that is fully attended during all business hours would need several employees in order to have all shifts covered. One that is only partially attended could make do with one employees who works during peak business hours, but not necessarily every day of the week.
When hiring employees, a laundromat owner will need to decide if he or she wants to have contractors or W-2 employees. Each one had advantages, but it’s ultimately up to the business owner and how much time he or she has to devote to managing payroll.
An independent contractor is hired by an owner with the agreement that he or she is paid and taxes are not taken out of the pay. A 1099 form is required stating that both parties will let the Internal Revenue System (IRS) know how much pay was received the prior year, and then the contractor will pay taxes on it accordingly. A contractor does not usually have benefits, may be required to supply their own tools and can take work on a case-by-case basis.
In the case of a business with vended laundry equipment in Greensboro, NC, that may mean that your contractor could work for several laundromats, or have other jobs. Depending on how you have established hours, he or she could have different hours rather than a set schedule.
Someone who is hired as a W-2 employee has more set guidelines with the company. He or she usually has a work schedule set by the company that is a fixed schedule. The work responsibilities and training for those duties are given by the employer. The tools needed to do that job are usually provided by the company. Depending on how many hours he or she works, you may want to offer benefits such as paid time off, medical insurance and investment into retirement plans.
A laundromat owner can decide which type of employees he or she needs depending on the number of businesses owned, the type of attendants needed in each one and how the employees should be paid. Someone who wants several full-time employees may want to consider having them as W-2 employees and using a payroll service to manage salaries and tax information. Having someone on staff as a full-time W-2 employee could be beneficial in the long run because employees tend to feel more secure and will want to stay longer.
However, independent contractors can be a good choice when a laundromat only needs partial attendants. Someone people prefer working part-time, or without any strings attached because they like the variety and freedom. Either way, a laundromat owner will be able to set a schedule based on the business’ needs and use with either type of worker.
For more information about what it takes to own a laundromat, be sure to visit back with the other blogs from this series:
- The First Steps to Owning a Laundromat
- Other Factors to Consider When Buying a Laundromat
- Hiring Laundromat Employees | Contractors vs W2
Affordable New and Used Laundry Equipment in Greensboro, NC | T & L
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