Painting Pressures: House Painting Has Worries

Running a house painting business is a great way to make money even during a downturn in the economy; many homeowners and business owners alike are looking for ways to spruce up a building rather than sell it – or seeking to attract buyers and business.  If you enjoy physical labor in the outdoors, house painting is a great option.  House painting is not a solo proposition.  In order to be efficient the painting company will need employees.  With employees come responsibilities for the employer, namely insurance and employee taxes.  Figuring out what insurance to provide and what taxes to pay will keep your business moving and out of any entanglements.

 

House painting is a physical job that takes place in an uncontrolled environment.  Work is often performed on a ladder with the added burdens of equipment, fumes, and weather conditions.  There is the possibility of serious injury or even death when painting homes.  Purchasing workers’ compensation insurance will provide a financial safety net for your company.  Workers’ compensation insurance covers employees injured on the job.  The insurance will pay for wages lost, medical bills, and rehabilitation bills.  In exchange for workers’ compensation the employee agrees not to sue the employer for damages.  Every state except Texas requires workers’ compensation insurance.  There are informational websites available that will point out specifics in each state.  Shopping for workers’ compensation insurance is as easy as browsing online or looking in the phonebook.  There are 12 states that hold their own workers’ compensation fund.  This is the best way to provide a safety net for your company’s assets.  It also signals to employees that you are serious about their welfare.

 

Tax issues are tricky for small businesses.  Doing taxes the right way from the start will save a lot of money and headaches later on.  The first thing that a new business needs is an Employer Identification Number through the IRS.  The business needs to withhold certain taxes from every employee paycheck: Federal income tax, Social Security and Medicare, and Federal Unemployment Tax.  Federal income tax is determined from the information on an employee’s W-4 form.  Both the employee and the employer will contribute for Social Security and Medicare.  Currently, they contribute 6.2% each for Social Security and 1.45% each for Medicare.  Employers will pay a Federal Unemployment Tax for any worker that has been fired.  Having a professional look over your taxes is the best solution for any small business, as taxes can get tricky.

 

When people plan on starting a house painting business they need to be aware of the technical issues that deal directly with employees.  Employees want to be taken care of both physically and monetarily.  Before starting your business make sure you have workers’ compensation and payroll taxes taken care of by calling PCG for the best quotes and most competitive rates in the industry. Since we work with dozens of providers you are always assured of getting the perfect fit for your needs.