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Casual labor

Discussion in 'Business Operations' started by Mr Distinctive, Jul 5, 2002.

  1. Mr Distinctive

    Mr Distinctive LawnSite Member
    from FL
    Posts: 16

    Many of the lawn care companies in FL appear to class their employees as 'casual labor' and use this to justify cash payments and hence no employee related taxes etc.

    Is this legal? What is the definition of casual labor? Also does worker's comp play a part in the lawn care business or is it excluded?

    any advice would be appreciated

  2. LawnLad

    LawnLad LawnSite Senior Member
    Posts: 738

    Obviously this is a question your accountant should answer. Florida WC laws may be different than other states.

    At any rate - you can pay an individual up to $600.00 a year before you deduct taxes and process them with regular payroll. HOwever, you're supposed to (I'll repeat that... supposed to) keep a record as to who the individual was that you gave money to. We do this by simply writing a check if we pay someone for a one time service that is less than $600.00. It is up to the individual to report his own income and deal with his relevant taxes.

    For Ohio, casual labor should be added on top of your regular payroll dollars to calculate your burden - or liability due. So yes... you do workers' comp on the casual if Florida is the same as Ohio.

    It's risky anytime you try to pay employees under the table by using subcontractor or casual labor as the line item for payments. Better to operate above board - you never know who might drop a dime to labor services if they feel they were fired or let go on bad terms.
  3. B. Phagan

    B. Phagan LawnSite Member
    Posts: 95

    That's great advice from Lawn Lad.......I'd sure follow it!

    Lots of shenanigans going on all over the country with payroll in our profession....one consultation I did, the owner was paying all his people cash, he got a IRS audit due to a disgruntled employee (yes, they happen!) and he ended up owing the IRS not only payroll taxes but tax liability for state and 1040 taxes.................lots of folks put themselves in harms' way when it comes to payroll........keep it above the law. It'll cost you less.

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