Originally Posted by dsaldivar
Yeah, I've heard the law is real clear on this. I'm sure others of tried to get around the law, including me.
I plan on talking with a lawyer on this aspect of using contracted labor. I know one of the tests requirements in determining between employee or contractor status is "using their own tools". But I was going to approach a lawyer about the possiblility of setting up a tool lease agreement to satisfy this requirement.
In other words, in the agreement I would state a price for leasing various pieces of equipment and tools. This of course would be added to the laborer's rate of pay so that in essence he is not paying anything and I'm not collecting anything.
Oooh I know this is going to open a can of worms.
Just thinking outside the box.
This is just one requirment. you would not be able to set the start time, finish time, how many hours a week they work, who they mow on what day, how they dress, and on and on. Are you going to have 1 truck, 1trailer, mower and other equipment for each man because it will be hard to explain 2 contract laborers working in the same truck. Also you would have to show the money they pay you to lease as income. If they are leasing your equiptment I doubt that you insurance company is going to cover them, they will want them to have their own policys. If I put some thought into it I'm sure I could think of other things. I don't mean to sound negative but it seems like a paperwork nightmare. I would think it would be easier to pay the taxes with no worries about it coming back to haunt you