Sub-contractor

[Mid Rivers]

Did a search and didn't find anything that covered this.

I am looking at hiring a high school kid as a "sub-contractor", pay him a wage per hour and then charging him a rental rate to use my equipment. Have him sign a release so that I am not responsible for personal injury (probably a worthless piece of paper, but better than nothing).

That way I don't have any employees and don't have to pay the un-employment, workman comp. Does anyone do this kind of thing? Is it legal? Thanks for the help.

[SIG]

Not an expert, but if you are paying him an "hourly wage" he is most likely an employee. I imagine the only way to get around all the "costs of doing business" is if he is a contractor, meaning he carries insurance, workers comp and has a company name. Better do some serious research before you get into something you will regret later i.e. he gets hurt.

[Brickman]

Tons of people push the line, but the government has a set of rules that define what is an employee, or a sub. Having this guy work by the hour comes under one of them, which would classify as an employee.
If he has his own name, works his own hours, drives or rents his truck, and rents your equip I think that would work. But you would need to pay him a flat rate. Like a % of your total income for that property.

One thing that I would think about is buying a mower for guy. He probably doesn't have that kind of resources around. Buy the guy a mower, and take it out of what you pay him over a period of time you guys agree on. That way he has some motivation to take care of it because he owns it, and will have to fix stuff what goes wrong out of his own money. Because I can tell you all the employees that I have ever had, the only motivation they had to not destroy my equip was the a@@ chewing they knew they would get if they did tear my stuff up, because they weren't careful.

[Premo Services]

My suggestion would be to get the advice from a good accountant!!!
Good Luck

[Pro-Cut Lawns]

If he where to be considered an employee, he has to be 18 years of age to legally operate or work near machinery.

[Turf Technologies]

Thats how i work I sub-contract his work out. I use my own truck, but everything behind the truck is his.He doesnt charge me for the use of equipment and tralier.But he pays me 50% of everything I do. Our first idea was 20$ a day i go out plus 10$ an hr. But if i go out for one lawn then it rains it doesnt pay.Be fare in your wage because to then rent that equipment he may not make much.

[smburgess]

Mid Rivers....

He'll be an employee.

sackedbysap...

You're a partner, not a sub-contractor.

[heygrassman]

If I am not lost, there is a list that the IRS uses to define a sub vs. employee. I believe there are 20 or so items. If he is using your vehicles, tools or machines.... good luck.

jf

[Runner]

Boy, there was someone who posted about a month ago, I believe, that had these criteria, but I don't remember who that was. I'll try to find it.

[lawneater69]

Subcontractors have to use own equipment to be considered a ''subcontractor''.