Isn’t There A Law Of Protection For An Employer When They Just Want Momentary Help/”under The Table” Wages/etc?
Filed in Category Guy Code
Isn’t there a law stating that if you want to hire someone to help you do work around the house or on a job site that you don’t have to have them legally tied is an employee, where taxes etc are paid?
If you know any details on this including the code number or name of this law that would help out. Thanks, I have a guy that’s going to help me with some work and he seemed a little ‘un easy’ wondering if I was legit or something. I am its just short term work and its only one temporary employee….
But this law it seems like if its under a couple hundred hours…etc…you’re ok…..details anyone? Thanks so much.
So basically…when is under the table (short term) legal? I don’t know this gentlemen I did some advertising for computer help and he was one who replied.
2 Responses to “Isn’t There A Law Of Protection For An Employer When They Just Want Momentary Help/”under The Table” Wages/etc?”
Posted: September 26th, 2009
Dad is correct about your right to engage contract labor. When I had my business I did this frequently for short term projects. This is a question for your tax preparer by the way. “Under the table” is never legal, because the term implies there is no records kept and it’s done in cash. When using contract labor you are able to write it off as an expense and the person contracted has to worry about all the taxes. I advise you to write a check, or get a signed receipt upon payment. If you pay over a certain amount, which I believe is $600.00 you will have to do a Form 1099 to report the contractors income to IRS.
This makes life much easier when doing payroll. However, don’t cross the line between contract and part-time. Your bookkeeper can help you with this.
You can query IRS regulations pertaining to contract labor. Good Luck.
Posted: September 26th, 2009
No “code number or name” is needed.
Hire your worker as a “sub-contractor”,this makes him/her responsible for their own tax and work situations , you can still pay by the hour just when their done get a receipt for the work that was done with date,full pay and signature and your covered .
You can even deduct the work from your taxes if you itemize.