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View Full Version : How to LEGALLY hire temporary help?


Precision Lawns
03-24-2007, 04:52 PM
I'm solo, but sometimes I get some larger jobs where I'd like a helper, and I've got some friends in need of extra cash that wouldn't mind helping me out for a day here and there. How do I go about doing this legally? Obviously I need to check with my insurance agent and make sure I'm covered for employees, but what sort of tax forms do I need to do - do I just make him fill out a W-4 like a regular employee, or is there a seperate form I'm supposed to do for a temporary employee? I tried to do a search on this, but it just came up with lots of unrelated posts, and searching the IRS site is like looking for a needle in a haystack, so I thought I'd ask here first. And is there a simple way to figure out payroll and withholding for one guy, one day, or do I need to get an accountant to do it? I know there's lots of solo guys that hire helpers on occasion, and I don't want to do it under the table, so I figured surely someone would know how to do this legally. Thanks.

Duekster
03-24-2007, 04:55 PM
Do a 1099 if you pay them over 600.00 as contract labor.

Precision Lawns
03-24-2007, 04:56 PM
For one day, I definitely wouldn't be paying them over $600! Plus, as they're working on my terms using my equipment, I don't think it's legal to do a 1099, right?

Vikings
03-24-2007, 05:04 PM
Too much trouble. Either hire from a temp agency or pay cash.

If you register that you have an employee you have forms and letters from the gov. You have to remit and take taxes got soc. ins. num..

Precision Lawns
03-24-2007, 05:07 PM
Too much trouble. Either hire from a temp agency or pay cash.

If you register that you have an employee you have forms and letters from the gov. You have to remit and take taxes got soc. ins. num..

So...does this mean that all the solo guys who hire a friend to help out for a day or two are doing it illegally? Since it's too much trouble to do it the way it's supposed to be done?

Mr Priceless
03-24-2007, 05:31 PM
So...does this mean that all the solo guys who hire a friend to help out for a day or two are doing it illegally? Since it's too much trouble to do it the way it's supposed to be done?


it helps to beat around the bush. there might be a hornets nest IN the bush:hammerhead:

Bill S
03-24-2007, 05:55 PM
Double check with your accountant but I believe that if you are paying someone under $600 per year, there is no need to withhold taxes. You will need to carry workers comp though!

Vikings
03-24-2007, 05:57 PM
So...does this mean that all the solo guys who hire a friend to help out for a day or two are doing it illegally? Since it's too much trouble to do it the way it's supposed to be done?

Most likely and who really cares, only the very anal think jay walking is too illegal to mess with.

If you're solo and don't have payroll set up (or any experience doing payroll) hiring temp labour LEGALLY, opens a real can of worms. It's just not worth it.

Pay cash or hire from a temp agency.

waltero
03-24-2007, 06:52 PM
What is everyones take on the temp agency for extra workers?


I called last week and I got a price and from what I understand, they will supply me with workers, cover all the taxes, workers comp, etc and if they don't show up I just call and they will send another person. They take care of all of the paper work, will drug test and do a background and after 90 days if I like the work they can come on full time or I can continue to use them to do all of the payroll for me. Sometimes it is the hardest job to find good people to work and when it is busy there is very little time for this.

I think I will be trying it this year and I will see, but I was wondering what experience others may have had. Thanks for the info.



The

Vikings
03-24-2007, 07:51 PM
What is everyones take on the temp agency for extra workers?


I called last week and I got a price and from what I understand, they will supply me with workers, cover all the taxes, workers comp, etc and if they don't show up I just call and they will send another person. They take care of all of the paper work, will drug test and do a background and after 90 days if I like the work they can come on full time or I can continue to use them to do all of the payroll for me. Sometimes it is the hardest job to find good people to work and when it is busy there is very little time for this.

I think I will be trying it this year and I will see, but I was wondering what experience others may have had. Thanks for the info.



The
Yeah they take care of all the paper work incl. compensation and generally the guys come to work, I mean they work hard. A bit pricey but for grunt work (spring clean ups) they are perfect. I also get them to deliver flyers.

TJLANDS
03-24-2007, 07:59 PM
Double check with your accountant but I believe that if you are paying someone under $600 per year, there is no need to withhold taxes. You will need to carry workers comp though!

This is correct. All you need to do is have them sign a reciept for the money you give them as long as it is under 600 for a year. Even if u use 20 of them.

newz7151
03-24-2007, 10:21 PM
Pay cash or hire from a temp agency.

Paying cash is (one of) the dumbest things you can do.

#1, it's illegal
#2, If you're paying somebody cash, you have no way at the end of the year to account for all the money that you are short from what people paid you. That will surely raise some eyebrows IF you are a legitimate business. An employee is a legitimate business expense like everything else.

I'm surprised the IRS doesn't have an agent monitoring this site (and the other one) and subpoenaing the IP records from the owner of the site in order to track down those of you that openly post about not paying what you are supposed to be paying.

Precision Lawns
03-24-2007, 10:25 PM
Paying cash is (one of) the dumbest things you can do.

#1, it's illegal
#2, If you're paying somebody cash, you have no way at the end of the year to account for all the money that you are short from what people paid you. That will surely raise some eyebrows IF you are a legitimate business. An employee is a legitimate business expense like everything else.

I'm surprised the IRS doesn't have an agent monitoring this site (and the other one) and subpoenaing the IP records from the owner of the site in order to track down those of you that openly post about not paying what you are supposed to be paying.

So, how DO you do it? I don't want to do it under the table - I run a legit business and don't want to compromise it by taking the path of least resistance, but if it's as big a headache to hire someone for just a day as it appears to be, then I'm inclined to just not do it at all...

T.E.
03-24-2007, 10:28 PM
This is correct. All you need to do is have them sign a reciept for the money you give them as long as it is under 600 for a year. Even if u use 20 of them.

Right here is your answer, Precision

Vikings
03-24-2007, 11:05 PM
I think my problem was that I phoned the Gov. to ask them how to do this very thing last year and of course they're going to drag down with bureaucracy and forms. I wonder what an accountant (a Canadian account) would say. I wondered if I hired guys for flyers and paid them with a cheque, if I could declare that as an expense without raising red flags with the payroll gov. people (whatever they're called)

newz7151
03-25-2007, 11:11 AM
So, how DO you do it? I don't want to do it under the table - I run a legit business and don't want to compromise it by taking the path of least resistance, but if it's as big a headache to hire someone for just a day as it appears to be, then I'm inclined to just not do it at all...


My post wasn't a jab at you. I was running on what Vikings was saying about cash, but I didn't notice he was in Canada, and laws might be different there.

Duekster
03-25-2007, 11:32 AM
For one day, I definitely wouldn't be paying them over $600! Plus, as they're working on my terms using my equipment, I don't think it's legal to do a 1099, right?


The only time this really becomes and issue is if the employee thinks he is full time and wants to collect un-empolyment when you let him go.

I mean, I would give the guy a piece of paper saying he is contract part time employee. Get his SS Number and tell him if he goes over $600.00 in a calender year you will issue a 1099.

If 90% of your entire workforce is 1099 then yes there will be red flags but to hire day labor on the occasional odd job, you are pretty safe.

Billz
03-26-2007, 01:40 AM
I do this for a few times every year. My accountant calls it temporary labor, and as long as I dont go over $600 to any one person, I just write them a company check and it is done.

maxkicker
04-10-2007, 08:20 PM
i never even thought of temp agencies about how much does it cost to go through a temp agency?

Vikings
04-10-2007, 09:59 PM
i never even thought of temp agencies about how much does it cost to go through a temp agency?

I have to pay $13.25 plus 6% gst. But they are raising the minimum wage here and that's what these guys actually get paid. 8 bucks for them and 5 bucks for the agency. But everything is covered by the agency incl. tax, remitance, ins. workers comp etc.