Hiring Your First Electrician Employee
Hiring is the hardest decision a solo electrician makes.
When to Hire
You're ready to hire when: 1. You're turning down 5+ jobs per week 2. You're so busy you can't give jobs proper attention 3. You have backlog (work scheduled weeks out) 4. You're working 60+ hours and still behind
Don't hire when: - You're just trying to reduce your workload - You don't have a pipeline of work - You can't afford the overhead - Your business doesn't have systems yet
Hiring before you're ready is expensive and demoralizing.
W2 Employee vs 1099 Contractor
W2 Employee You're their employer. You handle taxes, insurance, workers comp.
Pros: - You have control (they follow your systems) - You can fire them quickly if needed - Tax deductions for wages, benefits
Cons: - Workers compensation insurance: $5,000-10,000/year - Payroll taxes: 7.65% employer match - Benefits expectations - Employment compliance
Total cost: Paying someone $60k means true cost is $75k-85k.
1099 Independent Contractor They're self-employed.
Pros: - Lower cost - More flexibility - Easier to part ways
Cons: - Less control - IRS scrutiny (misclassified contractors get penalties) - No loyalty
Legal warning: If you control their schedule and methods, they're an employee, not a contractor. Misclassifying costs you penalties and back taxes.
What to Pay Your First Employee
Market rates for electrician helpers/apprentices: - Apprentice (0-2 years): $20-30/hour - Journeyman (2-5 years): $35-50/hour - Lead/Senior (5+ years): $50-65/hour
Location matters. Big cities pay more.
How to Calculate What You Can Afford
Example: You want to hire a helper at $25/hour.
- Wage: $25/hour × 2,000 hours/year = $50,000
- Employer taxes (7.65%): $3,825
- Workers comp insurance (~15%): $7,500
- Training/tools: $2,000
- True cost: $63,325/year
To afford this, you need that helper to generate at least $95,000 in revenue.
The Hiring Process
Interview (Skills) - Have them do a test job - Check references (call their past employers) - Ask about training/certifications - Make sure their electrical knowledge is solid
Vibe Check - Can you work together? - Do they communicate clearly? - Are they reliable? - Do they care about quality?
Start Small Hire them as a 1099 contractor for 2-3 jobs first. See if it works. Then convert to W2 if it's good.
Legal Requirements for W2 Employees
- IRS Form I-9: Verify they can legally work
- Federal EIN: You need an employer ID number
- State employment registration
- Workers comp insurance
- Payroll taxes
- Labor law postings
Use a payroll service (ADP, Gusto) to handle this. Cost: $50-100/month.
Managing Your First Employee
The First 30 Days - Pair them with you on jobs (train your way) - Go over safety, tools, communication - Set clear expectations - Daily feedback
Ongoing - Weekly check-ins - Clear communication about jobs/schedule - Pay them on time, every time - Invest in their training
Measuring Success - Are they profitable? - Can you trust them? - Are customers happy? - Are you less stressed?
If all yes, hire another one.
Red Flags (Don't Hire)
- No references or bad references
- Late to the interview
- Poor communication
- Can't answer basic electrical questions
- Seems like they just want money
Trust your gut. A bad hire costs way more than the time spent finding a good one.