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I have a question for those of you who run/own construction/remodeling businesses.What tools do you require an employee to provide versus what the company considers business expense tax deductible.Some examples are hand tools ,power tools,specialty tools.and throwaway items such as blades for all tools.Additionally what do you provide in the way of boot or clothing allowances.any input is much appreciated.Thanks in advance.
Timbercraft.
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Replies
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Hey Timbercraft,
Here's how we work it.
The employees supplies all thier personal stuff. Certain people have certain likes and dislikes when it comes to tools. It's a personal thing.
I expect them to have everthing that will fit in your pouch. I also expect them to supply circular saws, sanders, jig saws, levels, cords and drills. We have 22 people working for us right now. I'd go broke trying to supply everything. We are non-union - open shop.
I supply ladders, scaffolds, table saws, planers, jointers. The big stuff. If it takes two or more men to carry it, I will usually supply it. Some men are partial to a certain mitre box and use thier own and that's OK with me.
I also supply hoses, compressors, mitre boxes, saw horses, job boxes, lights, jacks and a whole collection of stuff that we have aquired over the years including speciality hand and power tools.
As far as replacement goes, the company repairs or replaces anything you break or wear out on my job. You drop your drill off the roof and it shatters on the concrete while you're working a side job, it's on you. Do it on my job, it's on me. Go buy a broken down drill at the pawn shop and expect me to fix it, then you've got a problem with the whole concept and I may have a problem with you. Dishonesty with this whole system will get you your last paycheck quick. Stolen tools are replaced if stolen after hours while locked up on the job. If you leave the back of your truck open while working in the house and someone comes along and rips you off, that's on you. There are exceptions to the rules. And I, as the owner of the company and master of all I survey (including the expenditure of company funds), reserve the right to make those calls as I see fit. Just kidding about the master thing.....I really try to lean everthing in favor of a good employee.
We buy all the lumber, nails, screws, glue, sandpaper, nuts, bolts, etc. that you need to do the job. Also, saw blades and router bits (all kinds). I also give gas money to guys doing a lot of running around for us. Your truck is insured during work related travel.
If you need a tool, the company will buy it for you (up to $200.00) and take $35 a week out of your check till it's paid for. No interest. You have to be here for a while to qualify for that.
Workwear is on you. Unless you want to wear the traditional carpenters stripes which many of us do. I buy the first pair for you and the next ones are half price deducted from your check. No shorts unless we are working at the shop. Tennis shoes are OK.
That's how we work it, and it seems fair to me.
Ed.
*EdDO YOU KEEP TRACK OF EACH EMPLOYEES TOOL EXPENSES, TO MAKE SURE SOME ARE NOT HARDER THAN OTHERS ON THE TOOLS.The reason I ask is I was once sharing a jobsite with a gasfitter. I noticed him using his cordless as a hammer, asked what the f#*& he was doing and he replied,"not a big deal the boss covers our tools". I had no employees at the time but I vowed I would never give a tool allowance and never have. If I notice an employee in need of something I might buy him something as a christmas gift for example, but this is at my discretion and depends on the empolyee.
*Hey Kevin,It's not a tool allowance I'm offering. They buy thier own tools or the company finances the new tool for them. They can use company tools when needed above and beyond what I already supply.These men are mostly jointers (trim carpenters) and cabinet makers. They have a great respect for thier and my tools. I don't have anyone on our crew (except myself) who abuses tools to that degree. If I did, they wouldn't be on the crew for long.Ed.
*Our carpenters are expected to provide their own hand tools and we provide everything else. That said, every experienced man has his own set of portable power tools that are his personal tools but are often used on our jobs. If we have a large job, almost all the power tools, cords, ladders, etc belong to the company. On a small job, the guys supply their own. Some of these tools they have purchased new but most of them are broken company tools that they have fixed (often just a burnt switch). The same system works with our old trucks. We find that they take better care of the tools and vehicles than we do, knowing that one day they will own them.
*Ed(dot),
View Image © 1999-2001"The first step towards vice is to shroud innocent actions in mystery, and whoever likes to conceal something sooner or later has reason to conceal it." Aristotle
*Joe,.................I'm speechless.........Ed.
*Watching you two make up brings a tear to my eye.God love ya.Tom
*I get 20 cents per hour to replace my tools. I want to provide my own tools. That way I have control. If it's mine the boss can't say "let Joe use the XXXXXX today" and you know Joe will trash it after you took such good care of it. My current boss has a serious tool addiction problem. I fit in.
*Hold on now Tommy B.........He still thinks I'm a yahoo and I still think he has a superiority complex.Just because we agree on some things doesn't change history.I wouldn't go sitting us next to each other at the table just yet.Ed.
*I expect a man to have all his basic hand and belt tools plus his own circular saw and drill. Most have much more. I provide the big ones. A tool allowance under a cafeteria plan payroll will help everyone but the IRS guys. All the guys have more and better tools which benefits the job and productivity levels. The company gets a tax deduction. The employee doesn't have to declare income and then deductions. A transportation allowance works the same way. No FICA taxes on either so automaticly 15% is more productive money instead of sucked down the drain.
*Where I'm at now, I supply almost everything I need for the job, hand tools, power hand tools, miter saw, portable table saw,cords/ compressor, hoses, guns, etc. The company supplies ladders/staging/break/etc. The company supplies all "use-ables"....nails/blades....and sharpens what you have, glues/caulks/etc. After a set amount of time, you can purchase a big ticket tool and have a set amount taken from the weekly paycheck. Any tool broken/worn out on their job site gets replaced with like model. This is for carpenters. Alot less is asked of helpers. This seems fair to me, especially after working for myself. Everyone having all their own stock makes for less down time. Jeff
*A buddy of mine told me that his boss told him he'd replace recip saw blades, etc. My friend bought $200 of all kinds of blades at the start of the job, and then allowed other workers to use them as theirs broke/wore out--he was the foreman--believing that the boss was good to his word. Boss replaced them and then took it out of his pay!!!! Told him he was stupid to let anyone use them.My friend just gave his two weeks notice.
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I have a question for those of you who run/own construction/remodeling businesses.What tools do you require an employee to provide versus what the company considers business expense tax deductible.Some examples are hand tools ,power tools,specialty tools.and throwaway items such as blades for all tools.Additionally what do you provide in the way of boot or clothing allowances.any input is much appreciated.Thanks in advance.
Timbercraft.