Taxes on Temp Workers

Discussion in 'Business Operations' started by brentcausey, Feb 6, 2008.

  1. brentcausey

    brentcausey LawnSite Member
    Posts: 32


    I have a guy that helps me part time but he's going to be working another job this summer. I can do all of my yards myself except for 1 large 200 trailer trailer park that we take care of. Do you know how the temp agencies work? Would I give the employee the 1099 form or do I pay the temp agency and they handle the taxes? I've never used one before so I'm just curious.

  2. lawnwizards

    lawnwizards LawnSite Silver Member
    Posts: 2,434

    i believe that if hes from a temp agency, you pay them how much they request per hour. that includes them doing all the work of taking out taxes and stuff. they then pay him what the temp agency wants to pay. correct me if i'm wrong but i think i got it right. goodluck.
  3. hackitdown

    hackitdown LawnSite Silver Member
    Posts: 2,505

    That is correct. I used Labor Ready last fall, and paid them with a charge card. They pay all taxes and worker comp. I paid $15/hr.

    They even dropped the guy off, and picked him up.
  4. brentcausey

    brentcausey LawnSite Member
    Posts: 32

    Man - business must be good up there. I pay guys 10 an hour here and they think it's really high!
  5. hackitdown

    hackitdown LawnSite Silver Member
    Posts: 2,505

    The guys actually earned $10 after Labor Ready took their slice for insurance/profit/tax.
  6. bill8379

    bill8379 LawnSite Senior Member
    Posts: 778

    I use labour Ready to but its here in canada. I pay $14 an hour to the agency. The workers get minimum wage which is $8.25/hour right now.

    The agency takes care of all taxes, compensation etc. they send me a reciept and it's just another business expense. Like a gas reciept.
  7. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    Just pay him Contract labor..........

    get all his him a little more an hour....

    claim it at the end of the year.....

    it's up to him to pay his taxes....

    a lot less headake on you
  8. dougaustreim

    dougaustreim LawnSite Senior Member
    Posts: 488

    There is a definate legal difference between an employee and a subcontractor. Your man is either one or another. What about workmans comp insurance, etc. If you only need one person for a few hours at a time, the temp agency is probably the best way to go. They'll take care of all the insurance etc.
    Austreim Landscaping

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