Hiring vs. contracting workers/help

[edprush]

If I don't want to deal with taxes and insurance issues but I want to have a couple people do small jobs for me (things like mow my lawn and run errands).

How would I do this legally?

I am assuming that if I hired them as employees then I would have to deal with all the things I am trying to avoid.

 

[HeroOfPellinor]

Exactly the kind of thing my company handles.

Here's the danger. If you employ them as contractors but treat them as employees, then if there is ever the question raised, YOU are responsible for both the taxes you didn't pay as well as the taxes they didn't pay. Plus fines. Does this happen a lot? More than you think. Guys will get their 1099 and rather than pay their taxes, notify the tax board that they were misclassified and get off without having to pay taxes and the company gets screwed.

As for what qualifies as being treated as an employee and not a contractor, it mostly has to do with how they are managed.

So, rather than hiring them as en employee or a contractor you would go through a third-party. For long term assignments you'd go with a contingent employment company and for short-term you'd go through a temp agency.

 

[MikeyIs4Dcats]

just hire a yard service or a handyman

 

[Ns1]

If you ONLY have control over their end product (ie mow my lawn) then they are most likely indepedent contractors, get a 1099-misc or whatever, and you're good to go

IF you assert control over them (be here every saturday 12-3, wear vintage basketball shorts and a wifebeater) then they're more likely to be classified as an employee and you are responsible for payroll taxes + other

 

[HeroOfPellinor]

Originally posted by: MikeyIs4Dcats
just hire a yard service or a handyman

He said, run errands. It sounds like maybe some kind of assistant.

 

[edprush]

Can't I just put a 'help wanted' ad in the paper and hire 'contractors' from that?

My main concern is for liability. Let's say I hire some high school kid to mow my lawn then he hurts himself on the job. Is there a way I can avoid that liability?

 

[edprush]

Originally posted by: HeroOfPellinor

Originally posted by: MikeyIs4Dcats
just hire a yard service or a handyman

He said, run errands. It sounds like maybe some kind of assistant.

Yes and it will be very intermittent. For example, this month I coud use someone for about 5 hours. Next month I could use 2 or 3 people for about 8 hours per person.


More than likely, the type of person that will be doing the tasks will be retired or in high school.

 

[Ns1]

Originally posted by: edprush

Originally posted by: HeroOfPellinor

Originally posted by: MikeyIs4Dcats
just hire a yard service or a handyman

He said, run errands. It sounds like maybe some kind of assistant.

Yes and it will be very intermittent. For example, this month I coud use someone for about 5 hours. Next month I could use 2 or 3 people for about 8 hours per person.


More than likely, the type of person that will be doing the tasks will be retired or in high school.

I'd say you could safely classify him as an indepedent contractor. No idea about the liability issue though

 

[MikeyIs4Dcats]

you can hire people to run errands for you and do personal shopping in many cities.

 

[HeroOfPellinor]

I would find the person on my own and then hire them through a third party employer. That shields you from workers comp as well as back taxes and fines from misclassification.

They will charge you the hourly rate plus employer taxes (because they will officially be working for you on assignment as an employee of the agency) and a markup of probably $3-5 an hour, but it would be worth for peace of mind in your case.

I believe temp agencies often also handle this kind of thing. Tell them you're looking for "employment outsourcing".

 

[edprush]

Can you give me an example of what you mean by a third party employer? Do you mean I find an existing business that has employees and I get my person hired by that company and then their employee works for me? Then I pay the business and they pay their employee (that actually works for me)?

 

[Ns1]

Originally posted by: edprush
Can you give me an example of what you mean by a third party employer? Do you mean I find an existing business that has employees and I get my person hired by that company and then their employee works for me? Then I pay the business and they pay their employee (that actually works for me)?

Think appleone or similar type employment agencies. That being said, with your description of the services that you need you could probably just hire them as an independent contractor.

 

[nonameo]

Originally posted by: edprush
Can you give me an example of what you mean by a third party employer? Do you mean I find an existing business that has employees and I get my person hired by that company and then their employee works for me? Then I pay the business and they pay their employee (that actually works for me)?

Kelly Services, Manpower, Robert Half, Etc.

 

[edprush]

Originally posted by: nonameo


Kelly Services, Manpower, Robert Half, Etc.

I don't think that is what HeroOfPellinor was referring to. He/she said temp agencies would also be another possibility.

 

[AlienCraft]

If this is casual employment of homeowner "choreas", your homeowner's insurance is usually enough to cover liablity for any injury or disability incurred while doing your "work." Check with your insurance agent for details and exclusions specific to your policy.
The person is liable for taxes as this is the definition of "independent contractor".
If they are doing work for your business, that is operated from your home, you would be advised to get a workman's compensation policy and / or incorporate, in order to shield your home from any legal action brought against you and your business.
This is when a good insurance agent earns their commission, and a good attorney, his fees.

Fail to CYA properly and you stand to lose it all to a shark and an injured client / worker.

 

[AlienCraft]

for a quick hire for a short term, use LABOR READY.