Laundromat owners have the option of either letting it “run itself” with no employees, or hiring someone to work in the facility on occasion to take care of problems that may arise. For some owners, especially if they own lots of laundromats, or if they aren’t able to visit regularly, hiring someone to check on the facility, keep it clean and help customers can ensure that everything is running smoothly.
When a laundromat owner hires an attendant, his or her main responsibility is to help customers, explain how to work the washers and dryers and keep the store clean. He or she is also considered somewhat of a security measure by being there because when a store is unattended, there is more of a chance of issues arising, such as vandalism or theft. Some laundromats offer a drop off, wash and fold service, where customers can leave their laundry to be washed and folded by the attendants. This is more of a high end service that can help increase revenue and keep the attendants busy.
Laundromat employees can be contractors or be considered regular employees that would be classified as a W-2 employee under federal tax laws. A contractor is paid in cash and would need to file taxes on his or her income. The owner of the business would need to provide a 1099 form. A W-2 employee would be paid according to regular payroll guidelines and the company would take taxes out before the employee is paid.
A business owner with only one or two laundromats may find it easier to hire contractors. Someone who owns lots of laundromats, or has many full-time employees may find that using a payroll system is easier to manage. He or she can also hire a payroll service, which will streamline the process and free up the owner to work on other aspects of the business. A payroll service is not the only option; some business owners want to manage all aspects of the business and may choose to do payroll him or herself.
Another factor that a business owner may consider when deciding whether to hire contractors or W-2 employees is how much the employees will work. There are generally two types of laundromats – fully attended and partially attended. A fully attended laundromat will have someone there the whole time the business is open. If it is a 24-7 operation, employees will be needed around the clock. A partially attended laundromat will only have someone there during typical business hours, even if the business is open 24 hours a day.
Don't miss the other posts in this series about owning a laundromat. If you're curious about what it takes to own a business like this, you'll find these topics useful.
Be sure to check out our next post as well. We'll be discussing more differences between contractors and W2 employees.
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