[jyl]

Ah ha. What do youse guyes think about this.

If we changed the manager from a W2 employee making wage, a little commission, and bennies (in normal years, about $50K + healthcare for about 35 hours/week - he has another gig too) to a 50% profit share self employed contractor:
- He (or someone else) could make $50K (but no benefits) in an average year (like 2019) or $70K+ if he grows revenue +15% or cuts expenses -8%
- But, he’d make no money about 4-5 months of the year while making $7-10K the other months (unless we smoothed it out)
- We would have fewer months when the property is losing money/burning cash
- We would not need to borrow money, because the property would be close to (or not too far from) cash flow breakeven almost from reopening
- He would be more incentivized (although, there’d be more scope for games like shifting expenses into the off season, we’d have to keep tabs)
- We’d save the payroll taxes (but he’d pay self employment tax)

The more I think about this, I don’t see why he’d prefer this profit share arrangement. But there are some capable folks, including some in the neighborhood, who’d jump at the chance to have a flexible gig (the manager has no fixed hours, he doesn’t have to be present to babysit the events, there is an hourly person who does that) of this nature.

Thoughts?