RE: Ramon

I communicated the offer of $45,500(see notes below) to Ramon and he hesitated at this amount as he is looking for $48,000.

Should I:

a. Hold firm on $45,500 - possibility of losing him. ( your cost $49,595)

b. Extend the $48,000 ($185 day rate) ( your cost $52,320)

Market background: My husband hires day captains. Going rate for a boat captain is $125 a day plus tips. The dynamic captains get $100 a day in tips. Average captains get $50 a day in tips. On the open market a good captain would be lucky to get $200 a day with consistent work.

Jeanne

tax, health.

LSJE does not offer health benefits. So no cost to LSJE. No benefit to employee.

Company Tax is approx 9% for all payroll taxes - FICA,FUTA,SUTA, workman's comp.

He will pay .0765% for his portion of FICA ( but he would technically owe .153% as an independent - if he is filing taxes. Technically a benefit to employee $3500 and a cost to company of $3500. Although most of these guys only see it as a cost to them.

Withholding tax - should be the same effect whether he is on payroll or an independent - if he is reporting income then he will have withholding taxes due based on his bracket.

what do you think?

I think that $45,500 is a good/market offer and he would have to hustle to get that out there now. And work would not be consistent - especially in September/October.

How about I hold firm on the $45,500 with an offer to review the $48,000 rate in 3 months. This would be December and if you are still happy with him. Then offer $48,000 as he could pick up work in December.