Very well put Marc. If I read correctly from the beginning of this post the goal is some growth of a one man operation. This can be a big step from my experiences. No matter how you pay or if you actually sub-contract when you hire someone else it is highly unlikely they will do the same or as good a job as you, especially in your eyes. If you can find someone who is trainable I found it best to hire them and work side by side for a couple seasons. The downfall here is you have to ad quite a few accounts by the time you add up all the costs of basically doubling your work crew. Even at $10 an hour you will have many other cost increases, such as workers comp. insurance. Plan, plan, plan and good luck to ya!
Originally Posted by MarcSmith
gotta remember what the state says is one thing. how the feds see it could be different.
here is the IRS web site and what it thinks.
here is My Op. Of course my opinion and $1 may still get you a candy bar...
A sub contractor is someone you hire to do a job. who generally provides his/her own tools, and is not directed on HOW to complete a task. The Sub contractor generally bid a job and is paid a final price based on the completion of the job. Ie you hire an electrician to wire up your shop.
An employee is generally subject to the business’s instructions about when, where, and how to work. All of the following are examples of types of instructions about how to do work.
When and where to do the work.
What tools or equipment to use.
What workers to hire or to assist with the work.
Where to purchase supplies and services.
What work must be performed by a specified individual.
What order or sequence to follow when performing the work.
the litmus test IMO is discipline. if you can discipline a person. then they are an employee... You generally cannot discipline a subcontractor.
take a look at the fed site it may change your mind...