Author: Sue Lani Madsen

Tales from the Small Business Trenches: DOR’s Prevailing Wage Speed Trap

Prevailing wage laws are supposed to protect employees by guaranteeing that fair wages are paid to them by their employers. The Prevailing Wage for each category of worker is adjusted by county. This could be a long diatribe about how the system often doesn’t represent actual prevailing wages and how the law increases the cost of public construction, but instead let me tell you how DOR uses the Prevailing Wage law as a speed trap to collect more taxes.

DOR enforces Prevailing Wage laws by requiring contractors on public projects to file a Statement of Intent to Pay Prevailing Wages at the beginning of the project, and an Affidavit of Wages paid at the end of the project. From the DOR website:

“The agency administering the contract may not make any payments until contractors have submitted an Intent form that has been approved by the Industrial Statistician.”

Affidavits also must be approved by the Industrial Statistician. You can check out the FAQ’s here.

There is an exception, or what should be an exception. When a contractor on a public project is a self-employed worker and has no employees, Prevailing Wage requirements do not apply. No need to protect you from yourself, no need to file Statements and Affidavits and waste the Industrial Statistician’s time, right? Wrong.

Filing used to require carbonless paper forms in multiple copies. Self employed contractors didn’t have to file paperwork, the paperwork would have made more work for DOR and served no purpose.

However, once DOR had the filing system on line there was nothing to hold them back. This year every public agency we work for must have gotten a DOR memo, and we now must file a Statement of Intent to Pay Prevailing Wages at the beginning of the project (indicating not applicable), and an Affidavit of Wages paid at the end of the project (indicating not applicable). DOR collects $40 each time.

$80 here, $80 there, and pretty soon you’re talking real money for small businesses performing small contracts.


[featured photo credit: bredgur]


Tales from The Small Business Trenches, Part 9: No Help Wanted

It seemed such a simple idea – hire a part-time handyman to help out around the ranch on a regular basis. I started blogging about the experience of one small business creating one small job as a way to stay motivated to get the paperwork done. I had no idea how much motivation it would take. Here’s how the experience of creating a job has unfolded over last three months:

Part 1 – In the Beginning the Owner Created Jobs: We decided we have a growing market for our product and services, we’d like to expand to meet the demand, and having a part time hired hand on the ranch next year would help me handle the added workload. Started with the Office of Regulatory Assistance to figure out what we needed to do to create a job. Optimism reigned.

Part 2 – There is a Purgatory for Job Creators: Spent half day circling and backtracking through government websites. Studied a cautionary tale about a fellow rancher hauled into court for asking ranch hands to fix fences; they said it wasn’t in their job description. Developed a job description meeting modern standards to create a job for a jack (or jill) of all trades, including fixing fences.

Part 3 – Working Conditions: Job creation stalled by real life and the endless To Do lists that come with owning and operating a small business. Received advice from a neighbor that “nowadays a hired hand takes almost as much time to hire and manage as if you just did the work yourself.” Hope not. Pessimism creeping in.

Part 4 – Into the Mountains:  Job creation starting to feel like a Himalayan trek into thin air. Downloaded handbooks and forms from WA Office of Regulatory Assistance, WA Dept. of Labor & Industries, U.S Dept. of Labor, WA Employment Security Department, U.S. Internal Revenue Service and WA Dept. of Social and Health Services.  An awful lot of homework just to hire somebody to muck out the barn, pitch a little hay, set up a few fences and help manage a herd of goats.

Part 5 – With a Little Help from my Friends: Friends in the bookkeeping and payroll business provided welcome advice, and it became apparent creating a job is no longer a do it yourself project in the current regulatory climate.

Part 6 – Big Wheel Keeps on Turning: Starting to have second thoughts, as it became clear the task isn’t about finding an employee but becoming an employer. Dismayed to find the level of liability one has to assume as an employer, even for a simple part time job. Reviewed once again why a hired hand seemed like a good idea a month ago.

Part 7 – It’s Not Easy Being Green: Side-tracked in the quest to create a traditional green job by policy articles on the new green jobs.  The panel that put together “Washington’s Green Economy – A Strategic Framework” had absolutely no one on the team with any experience at the original green jobs in agriculture and forestry.  Trendiness does not put food on the table or lumber in your house. The old green economy deserves more respect.

Part 8 – Crunching the Numbers:  Back on task. With help from an experienced payroll manager for a local company, finally calculated how much it will cost to hire one part-time minimum wage worker. Minimum wage at 20 hours per week for a nine month job equals $7,232 in wages. Payroll taxes to cover state unemployment, federal unemployment, Medicare, Social Security and L&I Workers Comp add almost 35% for a total of $9,759.15.  L&I Workers Comp alone is $2.18/hour.

The week we crunched the numbers was the same week as a presentation on the pitfalls of hiring with over 54,000 regulations to follow, necessity of background checks to weed out bad apples, L&I penalties going up dramatically on January 1st, and a bureaucracy tilted in favor of finding fault rather than protecting worker safety.  It was so depressing we put all talk of hiring aside for a few weeks.

The last straw came when a family member from Oregon recently told us about his horrible experience with state regulations.  He’s a man of integrity, a man who had to lay off his only employee when business slowed down. His employee asked if she could work on a limited basis, he asked the state for what he should do and followed the advice of state agencies to create a limited part time position – and now finds himself facing well over $10,000 in fines and penalties, all for a 16 hour per week position. He’s fighting it, but he’s never going to hire an employee again and is looking at other states to relocate and re-incorporate his business.

That settled it – we’re out of the job creation business.

This is not how I envisioned the end of the story when I started. I have created jobs in a small business before, and didn’t see how it could be that tough this time. The difference is that first job was for an administrative assistant for an architecture practice. It was a family hire so I didn’t need a background check, and her first assigned task was to figure out what paperwork had to be in place to legally have an employee.

It’s too bad we’ve made hiring and managing an employee such a burden, such a risk. It removes the first few rungs on the ladder to financial independence and stifles economic growth for all of us. The business regulatory climate is badly in need of climate change.


[photo credit: billsoPHOTO]

Tales from the Small Business Trenches, Part 8: Crunching the Numbers

As any business owner will tell you, jobs are not created because there is a tax credit available. Jobs are created because it’s not possible to get the job done without more hands on deck and there is income to meet payroll. It’s time to look at the numbers.

The state of Washington has already determined we must pay no less than $9.04 per hour in 2012, no matter how unskilled our new employee might be or how slow the work pace. We’re assuming a part time job at 20 hours per week, or a total minimum wage base pay of $180.80. That adds up to a base pay of $7,232.00 working part-time from March thru November.

But wait, there’s more . . . 

A friend who knows what she’s doing suggested I take a look at IRS Publication 15 (Circular E) Employer’s Tax Guide (link here It is the basic resource for anyone running payroll, but I quickly concluded the “E” is not for “Easy.”  59 pages of text and tables were not exciting after dinner reading.

Fortunately my friend, Brittany Fleming of Travis Pattern & Foundry, is an experienced Payroll Manager. She was willing to help walk me through the steps to figure out the impact of payroll taxes, and created a handy Excel spreadsheet to allow me to plug in different hours and wage combinations and see the impact on the bottom line.




Anticipated Tax Amount

State Unemployment


Varies based upon employer experience; Average for 2011 is listed here for new employers, actual rate can vary…


Federal Unemployment


This would be 6.2% except you get credit for what you pay in state taxes unless you are in a “Credit Reduction” state.  Washington is not one of those states.  Also Wage Base may change for 2012 due to pending legislation.


Social Security






L&I Workers Comp  $2.1768 Rate is per HOUR worked. – you are also allowed to deduct a portion of the premium from employee’s paycheck (amount authorized is determined when they provide you with your rate notice)








At minimum wage, payroll taxes add almost 35% to the total cost of adding this employee. What surprised Brittany as she put the chart together was the high rates charged by Department of Labor & Industries for Workers Compensation for a livestock operation. L&I Workers Comp is essentially a publicly run billion dollar disability insurance plan for employees, and the rates for a hired hand working with unpredictable livestock are higher than the rates for factory workers handling molten metal. The state has a monopoly on this mandatory insurance, and it is consequently more expensive than in other states.

Back to the basic question – do we or don’t we create a job? Can we afford to give up $9.759.15 of our income to pay an employee? Will having a hired hand allow me time to bring in enough off-farm income to pay for on-farm help? Workers Comp doesn’t cover business owners – would I be better off buying a good disability policy for myself than trying to prevent injury by getting some help? How about putting the money into capital improvements to make it easier to do the work without outside help? Can we make do with contract day labor and stay under the threshold for regulatory attention?

I was mulling over these question while my husband attended tonight’s Lions Club meeting. He arrived home to tell me about the speaker, who was introduced as an expert in working with L&I in a consulting role to businesses, helping protect businesses from fines by improving their paperwork and protecting their employees by improving safety.

The speaker painted a bleak picture of the environment for an employer in Washington – over 54,000 regulations to follow, penalties going up dramatically on January 1st as the state seeks to bring in more money, and a bureaucracy tilted in favor of finding fault rather than protecting worker safety. We have a higher injury rate and a lower return to work rate than similar states. The same agency that is charged with protecting worker safety makes most if its money off managing worker injuries, creating a conflict of interest. Washington’s benefits system is famous for being so generous that we attract malingerers from other states hoping to work the system rather than find meaningful work, making screening of new hires critical.

It was enough to make us both think twice about whether it’s worth the hassle to create a job. When I started this series, we had every intention of hiring an employee in January. Now we’re not so sure.

What would you do in our place?


For previous stories in the series, search this site for “small business tales”.


[photo credit: Tom Carmony]


Tales from the Small Business Trenches, Part 7: It’s Not Easy Being Green

We’ve been hearing about green jobs for more than three years. Growing jobs by growing the green economy was a centerpiece of President Obama’s first jobs plan. But just what is a green job? And why am I having such a hard time creating one?

The Washington Employment Security Department (link here) defines the green economy as “rooted in the development and use of products and services that promote environmental protection, energy independence, and economic development.” It goes on to define green jobs as:

 “Green jobs are jobs in the primary industries of a green economy that promote environmental protection and energy independence.

Energy independence includes the development and use of energy efficiency and renewable energy products and services.

Environmental protection includes the prevention and reduction of environmental pollution, as well as efforts to mitigate environmental pollution.”

Looking at the terms – green, growing, rooted – it would seem obvious that farming, ranching and timber are green industries. This conclusion is borne out by Washington Employment Security Department statistics, where agricultural workers take two of the top five slots on the green occupations list. Here’s why:

  • Agricultural lands may be used to grow oil seeds for direct use in biofuel production. Appropriate management of crop and range land is not only key to a healthy environment but provides local sources of food at a lesser carbon footprint than food imports.
  • Healthy rangeland supports a variety of wildlife in harmony with domesticated grazing animals. Managed grazing reduces wildfire risks, mitigates air pollution and recycles carbon from decaying plant material back into the soil.
  • Timber is a renewable resource both for construction and energy production. Well managed forest lands are a vital part of municipal watersheds, providing a critical public service for urban areas.

Jobs managing our natural resources are undeniably the original green jobs.

On the public policy front, Washington jumped on board with President Obama’s 2009 green economy and called together a distinguished panel of experts who put together “Washington’s Green Economy – A Strategic Framework.” Community Trade & Economic Development (CTED) was the lead agency, and the resulting publication can be found on the on the Department of Ecology website (link here). On page 13, this Strategic Framework announces that “forestry and agriculture – as a whole – fall outside of this definition.” The Strategic Framework goes on to say:

“However, organic farming and sustainable forest management are clearly contributors to pollution prevention, and conservation practices and recycled biomass in forestry and agriculture are certainly within the green realm. We have chosen to capture those activities in the other green-economy industry groupings, such as renewable energy, water conservation, waste management, etc.”

According to State Economist Arun Raha in a 2009 lecture to a group of architects, agriculture  is the primary driver of the economy of the state of Washington. If you look at the list of stakeholders and experts on the Green-Economy Jobs Initiative Advisory Team (page 2), you will find there are none – absolutely zero –from agriculture and forestry sectors. The strategic plan to create green jobs and strengthen the green economy didn’t include anyone with experience in the original green jobs.  Agriculture and forestry have been reclassified  into other categories by experts who didn’t realize the extent of their ignorance.

Meanwhile, back at the ranch . . .  We still need to create one green job in order to be more effective in sustainable management of healthy range land. Nothing in the Strategic Framework is going to help. It’s not easy being green.


For previous stories in the series, see the links below:

Part 1:

Part 2:

Part 3:

Part 4:

Part 5:

Part 6:

[photo credit: Frankly Richmond]

Tales from the Small Business Trenches, Part 6: Big Wheel Keeps on Turning

Even though this is a linear series, job creation is a non-linear activity. While reading all the helpful employer regulatory stuff (where is that sarcasm font, anyway?) over the last two weeks, I had to remind myself exactly why becoming an employer sounded like a good idea two months ago.

In our case, what first triggered the notion of creating a job for a hired hand was a certain clumsiness on my part. Last summer I was knocked down four times by determined goats, barely avoiding serious injury on a couple of occasions. Having an extra set of hands around would improve workplace safety on the ranch. Stubbornly working alone is a major contributor to injuries among farmers and ranchers.

Second is the upcoming challenge of developing new wintering facilities. In addition to backing me up on regular chores, we could use a hired hand this next year to carry out fence building and barn repair tasks while my husband is busy on targeted grazing projects. Investing money into an employee instead of a contractor could fulfill objectives for both safety and necessary capital improvements for herd expansion.

If we don’t increase revenue, then the cost of an employee comes directly out of our pockets and reduces our income.  That’s not my idea of growing the economy, and this new employee must be part of growing revenue. To that end, this past week was focused on a long term project to establish a new agricultural cooperative.

The purpose of the co-op is to provide USDA processing for direct access by producers to retail markets, and to supply consumer demand for local food in local markets. Any time the farmer or rancher can capture a higher percentage of the consumer dollar by cutting out processing and shipping costs, it increases the sustainability of the family farm and supports local food production. A producer owned co-op can provide the level of farm to plate traceability that consumers are demanding.

The spin-off benefit is more new jobs. Right there is the third reason for becoming an employer – to free up more of my time to work on projects like the new co-op, so we can afford to hire somebody to build fences and chase goats, so we can take advantage of the co-op services, so the co-op can keep employees working, so the co-op employees can spend money, so other local employers can afford to hire employees, so we have a thriving economy to welcome home our sons and daughters who have left the farm seeking employment.

Economic growth means each new job generates more new jobs. Even creating a job for a hired hand is a part of the growth spiral. And the big wheel keeps on turning . . .


For previous stories in the series, see the links below:

Part 1:

Part 2:

Part 3:

Part 4:

Part 5:


[photo credit: kandyjaxx]

Tales from the Small Business Trenches, Part 5: With a Little Help From My Friends

It’s been another one of those weeks where the job of job creation has to give way to actually doing my own job. My daughter suggested seeking out a bookkeeping and payroll company to take me through the process and handle the paperwork. She holds such a position for a large organization, and she does it so indispensably that she was still answering text messages while she was in labor – until her husband turned off her phone.  She worked for me part time when she was in college, and she knows I need help.

A neighbor has provided payroll service for small businesses in the past and still has a few clients. However, last time we chatted, she said it was getting to be such a headache she’s cutting back and focusing on running a new business – without employees. Anyway, paying a consultant to create and manage one job just doesn’t pencil out.

A Facebook friend also provided helpful advice. She is another one of those capable women who run offices. The list of federal withholding forms and new hire reporting requirements didn’t phase her a bit, and she confidently said she could help. I’d already made one mistake about being an employer – the purpose of the Department of Social and Health Services (DSHS) forms. I said last week in Tales:

“Apparently I may have to serve as a collection agent if I hire someone who is delinquent in child support payments.”

My young friend corrected me:

“It isn’t even delinquent. They can be perfectly current and you still would have to serve as collection agent. I currently process anywhere from 80-100 employees with child support just in WA state . . . you also could have to deal with OTHER state orders coming in.

You also would have to serve as collection agent for the courts if the person has court-ordered Writ of Garnishment. I also process many of these every week. Not nearly as many as child support, but plenty of them.

I hadn’t even thought of those items that you would have to do once someone is hired – mainly because it is second nature to me after almost 9 years of doing payroll/HR.

Don’t forget about the laws relating to preventing sexual harassment in the workplace; discrimination; small employers may not be subject to Equal Opportunity Employment (not sure on this one) but even if not, you still could run into issues if someone thinks you slighted them for the job because of their race/nationality/heritage.”

Clearly creating a job is a tough do-it-yourself project, and networking with family, friends and neighbors for advice will be critical. Meanwhile I have deadlines for paying clients.  Job creating will have to take a back seat until next week.


For previous stories in the series, see the links below:

Part 1:

Part 2:

Part 3:

Part 4:


[photo credit: hojusaram]

Tales from the Small Business Trenches, Part 4: Into the Mountains

For three weeks I’ve been trudging through the foothills of job creation, getting acclimated to the terminology. Last week I settled into base camp and followed advice from the Governor’s Office of Regulatory Assistance (ORA), which recommended “looking at Section 2 of the Grow chapter at”  A sensible mountaineer is willing to study the guidebook before attempting to summit a new peak, and this is definitely beginning to feel like a Himalayan effort.

As discussed in last week’s installment, finding time to focus on a new task is difficult for any small business owner. Checking out the “helpful” links for new employers on the ORA website started late Wednesday night and stretched into Thursday morning. At 1:15 am I was ready to give up on creating a job, but like the climbers in John Krakauer’s “Into Thin Air,”  I am continuing out of sheer stubbornness.

Previously I clicked through the ORA’s Workforce Explorer links to develop a job description, but declined to pursue assistance in training or posting the job. I checked out the link referencing federal tax credits, and it involves a lot more paperwork. If I happen to hire someone from one of the favored groups (“veterans, food stamp and welfare recipients, recipients of Supplemental Security Income, ex-felons and certain youths”), maybe I’ll give it another look. A $2,400 tax credit will not drive any business to hire.

The next links sent me to download the federal Internal Revenue Service (IRS) Form W-4 Withholding, IRS Form I-9 Employment Eligibility Verification (due within 3 days of hire), and state Department of Social and Health Services (DSHS) New Hire Reporting Program information (filed on line within 20 days of hire). I’m going to need a timetable to keep this straight.

The second set of bullet points on the ORA website is preceded with the following cheerful statement “Employment is also an area of significant recordkeeping and tax responsibilities. It’s important that you understand the regulations and costs as you plan your business.” The first link is titled Employment Law Advisor, and the link was broken. Better check back this week.

The remaining links on the list directed me to:

  • WA Department of Labor & Industries: Downloaded 58 pages of checklists, forms, laws and regulations related to wage and hour laws, independent contractors definitions, and workers’ rights. Downloaded another 40 pages titled “Employers Guide to Industrial Insurance in Washington State.” Also bookmarked link to Washington Industrial Safety and Health Act (WISHA), too lengthy to download and will have to return to the web to read up on an employer’s responsibilities.
  • US Department of Labor:  Don’t know what this form is, the link was broken. Not helpful, must remember to check back.
  • WA Employment Security Department: First link focused on warning about classifying someone as an independent contractor. Second link to information on unemployment insurance led to a maze of websites, mostly focusing on how to claim benefits. Finally stumbled on the link to the employer’s side of the deal, and bookmarked for return at a later time.
  • US Internal Revenue Service: More warnings about independent contractors, and links to online Publication 15 Employers Tax Guide and Publication 15A Supplemental Employers Tax Guide. Also links to Forms 943, Instructions to Form 943 and yet another supplement related to tax credits.
  • WA Department of Social and Health Services: Downloaded 16 page document titled “Employer’s Guide to Child Support.” Apparently I may have to serve as a collection agent if I hire someone who is delinquent in child support payments.

Without  a high speed internet connection, any new employer would be in trouble. Although many of the websites have instructions on how to contact an agency, order publications or file offline, you still have to be online to find them. And why is the government so fixated on making sure workers aren’t independent contractors? My cynical suspicion is because it’s harder to control and collect taxes on independent contractors, and not out of concern for working conditions.

It looks like I’ll be in Base Camp 1 a little longer, reading up on all my new  responsibilities as I try to create a single job. My little molehill seeking to employ a part-time hired hand is turning into a major mountain.

For previous stories in the series, see the links below:

Week 1:

Week 2:

Week 3:


[photo credit: jjwright85]


Tales from the Small Business Trenches Part 3: Working Conditions

There’s a story about the Department of Labor & Industries (L&I) enforcement inspector who comes to a ranch to check on the working conditions. He walks up to the rancher and says, “I need to talk to your staff.”

The rancher replies, “There’s only one fellow who works on the ranch. He’s on duty seven days a week, is up at dawn and out in the field until dusk, gets paid mostly in room and board, doesn’t get any sick leave, and rarely takes a vacation.”

The L&I inspector gets all excited, thinking he’s uncovered a serious case of workplace rights violations, and says, “That’s the one I want to talk to, I must interview that poor exploited worker.”

“You’re talking to him,” replies the rancher.

Last week’s article ended with a well-intentioned pledge to set aside a half day to focus on creating a job for a hired hand. Unfortunately, the four hours set aside for job creation were eaten up by:

  • A software troubleshooting session and upgrade download, taking an entire afternoon and part of an evening.
  • A nasty head cold slowing down productivity.
  • Two goats deciding the grass was greener outside the pen than in, had to be herded back into the buck pen and the fence fixed. Three times.

All unplanned, just the typical challenges of running a no payroll small business. There is no IT Department, there is no sick leave and no back up, and until the Director of Human Resources (i.e. me) can get through this job creation task there is no hired hand to help chase down errant goats and fix fences.

The other day, my neighbor stopped his tractor while I was helping my husband load up animals, first time we’d had an opportunity to talk in months. He said his wife was asking him why he seemed to be in the field all the time, more than when they first started farming 30 years ago. He said he thought about it, and realized they always used to have a hired hand around the place, but he hasn’t been able to do that for awhile. He said nowadays a hired hand takes almost as much time to hire and manage as if you just did the work yourself.

I hope he’s not right. I’ll have a chat with the Director of HR and see if she can get her act together before next week’s article is due, even if it means squeezing a few more hours into the work day.


For previous stories in the series, see the links below:


Week 2:


[photo credit: InfoMofo]

Tales From the Small Business Trenches, Part 2: There is a Purgatory for Job Creators

Last week’s article ended with a question emailed to the Office of Regulatory Assistance. An efficient staff member replied the same day. I asked, “How do I know if our business is already licensed to be an employer and I need to re-file my Business License?” Her answer suggested that I read the ORA guidance on the subject. Of course, it was the ORA guidance that prompted me to ask the question. Sigh . . .

I called the woman at ORA and left a voice mail clarifying my question. She cheerfully called back within two hours and said that if our business was licensed to be an employer, then we would have been filing reports with the Department of Labor & Industries for the past year even though we have no employees. We haven’t been reporting to L&I, so that clears up the question. Re-file it is.

Back to the State of Washington Business Licensing Service web page and halfway through I hit the next roadblock – I can’t complete the Business License process unless we plan to hire within 90 days. Our timeline to hire is early next spring. New business license goes back on the To Do list and on to the first link on the ORA checklist – the Employment Security Department Workforce Explorer website, which offers a link to another website for writing a job description. Shouldn’t be too hard to write a description for a hired hand – someone willing to put his/her hand to any chore that comes up at the ranch. Do I really need another website?

An article in the Capital Press tells me maybe I do. A Yakima area rancher has been sued twice on behalf of three sheepherders who came from South America to work. The rancher won the first suit at the Washington Supreme Court, and now is facing another suit. Lawyers for the sheepherders claim they were asked to perform ranch hand duties outside their job description, like fixing fences, maintaining machinery and general ranch chores. Fixing fences, maintaining machinery and pitching in with chores comes with the territory when taking care of livestock. Writing a defendable job description looks like a necessity.

On to the ESD website. Unfortunately, the ESD job description builder breaks a job down into discrete parts and doesn’t lend itself to the non-specialized and unpredictable environment of family farming and ranching. An hour later, I had a properly filled out form that didn’t really describe what we’re looking for. Another link offered an option to search by job title. A search for “hired hand” turned up a formal description that wasn’t far off, and included a range of wage rates. Another link offered an opportunity to explore wages in more detail by region in the state, but I gave it up after about six clicks. Too Much Information.

I untangled myself from the web and took a deep breath. Creating a job is going to involve not only figuring out the applicable regulations but sorting through a lot of clutter. Clearly I can’t try and squeeze this into bits of time available in between other duties as a small business owner and community volunteer.  Next week I’ll set aside a half day and tackle the job of creating a job as a part-time job in its own right.


[photo credit: Daniel Davies]

Tales from the Small Business Trenches: In the Beginning, the Owner Created Jobs

This is the first in a series of posts on what it takes to create a simple job. In a blog post in April, I explored the idea of creating a new job on our family ranch and boiled the options down to:

Option A:  Comply with significant regulations, recordkeeping and tax requirements; create a job and cut unemployment in my community; and grow the economy and increase my workload without increasing my income; or

Option B:  Reduce the scale of our business to avoid need for an employee; buy a better handcart to move bales; and employ occasional day labor as needed.

Inspired by President Obama’s recent campaign – uh, jobs – speech to a joint session of Congress, I’ve decided to abandon Option B and create a new job.

Just kidding. It really was Speaker Boehner’s call for bipartisan action to “liberate America’s economy and spur private-sector job growth.” And, okay, you’re right if you suspected that President Obama and Speaker Boehner had nothing to do with my change of heart. Here’s why I am seriously undertaking to wade through the red tape and create a job:

We have a market for our product and services, and we need help to fill the demand.

Now you know the secret to incentivizing entrepreneurs to create jobs – a demand for goods and services, not political speechifying or bureaucratic rule-making. Ironically, some of the demand for our vegetation management services is driven by regulations that make any tool other than grazing unusable, but there is still enough pure market demand to justify a modest expansion.

First question is where to start. According the Office of Regulatory Assistance:

“If you’re hiring your first employees, you’ll need to re-file your Business License Application with the State of Washington at a cost of $15. Your information will be forwarded to the Department of Employment Security to set up a state unemployment tax account, and the Department of Labor & Industries to set up a workers’ compensation account and obtain your minor work permit, if applicable.”

About one hour and three web site searches later, I sent this email to the Office of Regulatory Assistance:

“We have our UBI [Master Business License] number and a federal EIN [Employer Identification Number]. We are now at the point where we’ve decided to create a job. How do I tell if our current Business License is set up for employees or if I have to re-file the Business License for an additional fee? I searched the records at the Secretary of State’s website and the Washington State Department of Licensing website, and they are silent on the question.”

Now we wait.


[photo credit: Julia Manzerova]

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