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Old 02-22-2005, 09:14 PM
dforbes dforbes is offline
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Join Date: Aug 2002
Location: Boonville MO 65233
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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
Rain Dance Irrigation&Landscape
24550 Highway 98
Boonville MO 65233
Dennis E. Forbes
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Old 02-22-2005, 09:37 PM
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drsogr drsogr is offline
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Join Date: May 2004
Location: Wichita, KS
Posts: 1,275
I use "contract labor" for my sod jobs, since they bring their own tools...and set their own hours. If they don't show up when I need them, I don't use them again. The one big problem with contract labor is the whole insurance issue.
“Far better it is to dare mighty things, to win glorious triumphs even though checkered by failure, than to take rank with those poor spirits who neither enjoy nor suffer much because they live in the gray twilight that knows neither victor nor defeat.”

-Theodore Roosevelt
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Old 02-22-2005, 09:55 PM
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j fisher j fisher is offline
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Join Date: Feb 2004
Location: fayetteville nc
Posts: 296
If you look at the IRS web site you can find the rules for subcontract labor. It is very clear. The only thing you can furnish them is the work, and the standards that it has to meet. You cannot "legally" furnish them a pencil to fill out there paper work.
J Fisher
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Old 02-22-2005, 10:07 PM
dsaldivar dsaldivar is offline
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Join Date: Feb 2003
Location: Salt Lake
Posts: 51
Yes I agree with all of you...
If push comes to shove I wouldn't be able to get away with it because really the law would recognize the intent.

Just training myself to think outside the box. It doesn't matter anyway. I use subs for various things and I'm going legit with the paying of employer taxes for employees I hire this year.

Thanks for the input.
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Danny Saldivar
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