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Guys i have a question and i need help please

Discussion in 'Business Operations' started by justmjc, Aug 2, 2004.

  1. justmjc

    justmjc LawnSite Senior Member
    Posts: 261

    Ok, I understand this will sound bad, and no harm intended, but tell me what I may be facing here and what remedies there may be if worse comes to worse.

    Ok, I've been servicing an apartment complex for some time now and it seems the complex was not happy with the work i've been providing lately. The thing was that I didn't even know they had an issue with the service until now. Basically, the complex had become more than I could handle. I had thought everything looked rather nice, although. Anyways, i'm about to dissolve our agreement with them due to lack of level of service they seem to require. This isn't my issue or question.

    I know this is wrong, wrong, wrong, and I don't know why I let this become my problem, but back when I started with this complex, there was a tenent, that kept bugging me to allow him to assist time to time for cash. First month I said no, can't do it. Then after many constant attempts, I finally gave in to allow him to help for a few hours per week......BAD.... thinking I would be nice and help the guy out. Hell, he was down on his luck and I even donated a vehicle to him. Ok, now nothing bad has happend, I'm fully insured for the business, but not him, and I'm about to quit with the complex due to service issues, which is better for them, and to right this wrong with this gentlemens assistance. Complex manager tells me on the phone, (I notice you have a tenent helping you out). So i re-directed the conversation elsewhere, but they do know, and i'm a little nervous. Verbal agreement over the phone says we can dissolve the agreement if I can clear their 1 week balance on the account. So my issue I'm afraid of is with this tenent that did help assist.

    I've paid him maybe $150 cash, nothing large, but my question is what problems could I potentially face with this issue? Can I 1099 him at the end of the year to remedy any potential issues that may arise? I know it was a terrible move, but I just wanted to help this guy out. Please go somewhat easy on me because my heart was there, my mind was not, and I'm hoping to seek the advice of anyone in the know. Or perhaps anyone can tell me what I might do. Thanks
  2. trimmasters

    trimmasters LawnSite Senior Member
    Posts: 261

    What can they do? not really a thing. You have to pay someone over (i forget exact # but its serveral hundred dollars in a year)before you have to wory about taxes.
  3. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    Yep, it's around $1000, I believe before you have to worry about a 1099.

    Besides, the "owners" don't know what the guy got in return for helping you. For all they know, the guy was thinking about getting into the lawn care biz and you said "here, work with me a couple hours here and there" and see if it's something you're interested in.

    You can tell them that yeah, I had one of your tenants working with me, but he decided he didn't want to persue this line of work.

    Besides, it's none of their business who's working with you, as long as that person wasn't destroying anything, or being a hazard in any way.
  4. J&R

    J&R LawnSite Senior Member
    Posts: 835

    Any money paid over 599.00 to one person in one year you need to give them a 1099 form.
  5. justmjc

    justmjc LawnSite Senior Member
    Posts: 261

    Thank you guys, I feel relieved of the situation more-so. Thanks for the replies.
  6. gvandora

    gvandora LawnSite Member
    Posts: 143

    Don't worry about the tennant. Its not worth their time to do anything about him working for you. How would they even know you're paying him cash?
  7. Turf Medic

    Turf Medic LawnSite Bronze Member
    Posts: 1,073

    Nothing to worry about, the apartment manager might have just been making conversation. Or was looking for amunition the next time they talk to the tenant about late rent. Not your problem
  8. justmjc

    justmjc LawnSite Senior Member
    Posts: 261

    ok, one more then about the apartment complex. Should I make up a Release of liability letter just to cover my butt against anything, or just sign off on the contract stating service terminated and call it a day?
  9. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    Just sign off and call it a day. If you can, get them to sign off and get a copy for yourself.
  10. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    Hi Justmjc,

    Here is a quote from this site.

    "If you are unfamiliar with a FORM 1099, this is how it works: If a self-employed is paid $600 or more in one year by an individual or corporation then that individual or corporation is required to send the self-employed a Federal FORM 1099-MISC at the end of the year stating “nonemployee compensation” paid. The government is also sent a copy of the form. "

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