Please help a youngling with his new landscaping business

Discussion in 'Starting a Lawn Care Business' started by Brill LC, Jan 11, 2012.

  1. Smallaxe

    Smallaxe LawnSite Fanatic
    Posts: 10,080

    I never heard that the IRS has a classification such as 'domestic workers'... Anyone who si not considered and 'employee' is self-employed...

    Everything hinges on the fact that Social Security Taxes need to be payed on all 'Earned Income'... that is what you need to consider in your relationship with people who help you...
     
  2. Brill LC

    Brill LC LawnSite Member
    Posts: 11

  3. Smallaxe

    Smallaxe LawnSite Fanatic
    Posts: 10,080

    If they are hired through clients then the client would pay them separately in order for them to be domestic help... Workers Comp is a whole different ball of wax than SSA, but the definition of Employee is the kicker on both...

    I would ask a reputable aacountant, familiar with your state's WC laws, definition of subcontractor as well as FICA ramifications to let you know what you could get hit with... How many times did I see the word lawsuit in your reference?

    The description "Control the work place and provide the equipment' would also apply to family members that you have help you out at odd times during the year...
    If you use the same people that other people use, that should be a sub-contractor in their own right, but who knows for sure...
    Ask an accountant, NOT a lawyer for obvious reasons... :)
     
  4. Brill LC

    Brill LC LawnSite Member
    Posts: 11

    Thanks for the reply Smallaxe.

    I've only used helpers when my clients has been willing to contract them as domestic workers and pay them separately. I've been working as a contractor since I provide equipment. However, I'm still providing equipment, transportation, and directing my helpers. Is this arrangement OK?
     
  5. Brill LC

    Brill LC LawnSite Member
    Posts: 11

    If I'm not allow to classify workers as domestic workers, could someone please recommend a worker's comp plan? I want to cover 2-6 day laborers. Are there any that are based on payroll?
     
  6. ralph02813

    ralph02813 LawnSite Bronze Member
    Male, from Charlestown, RI
    Posts: 1,041

    Workers comp is based on payroll, you really need to sit down with an account to figure out you state and local tax obligations for employees if that is what you want.
     
  7. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,312

    Yes I just read the crap on that site I would highly recommend you find another source. I know you are young and have not developed your bias radar yet but when a site says " In 1991, in a shameful display of blaming the victim, the legislature:" and then goes on to cry about the worker not getting his fair share its time to find a better source of laws this one doesn't have your best interest in mind.

    Also on independent contractor side you want to look up the fed rules not the state the state can make them more strict but not less. And the IRS has set rules for independent contractors and if your providing the equipment and giving work times your kind of screwed. Now there was a guy in Texas who got around the labor fluctuation part by paying a flat rate for the lawn crews of 50% of the lawn cut price. The faster they got them done the more per hour they made the slower the less this works as long as they never go below minimum wage.

    As for the health insurance what I did read was if you are under 10 employees you are not required to provide health insurance but if you do not then Employers who do not will be assessed an annual fair share contribution that will not exceed $295 per employee per year. The fair share contribution will be paid into the Commonwealth Care Trust Fund to fund Commonwealth Care and other health reform programs.
     
  8. ralph02813

    ralph02813 LawnSite Bronze Member
    Male, from Charlestown, RI
    Posts: 1,041

    Kelly is on the money! and only so you don't forget please go see an account or at least sit down with someone in your state tax office.
     
  9. Brill LC

    Brill LC LawnSite Member
    Posts: 11

    Thank you all for your responses. I'll stick to solo until I know what I'm doing concerning employees then.

    One more thing: Do landscape contractors in Massachusetts need licenses or permits?
     
  10. ralph02813

    ralph02813 LawnSite Bronze Member
    Male, from Charlestown, RI
    Posts: 1,041

    In RI and in most states if you touch something on someone else's property for money and it doesn't grow it often times puts you in a "contractor" status call your department of business regulations or look on line for llicence types in your state.
     

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