Hiring ?

jrsimpson77

LawnSite Member
Location
Utah
I just got a rather large contract and I'm going to need some help. At least one helper that can do trimming, edging and help out with a push mower. I was checking into getting workmans comp and getting payroll started. When I was with my attorney getting our services agreement already he mentioned why don't you hire someone as a independent contractor, That way you can just 1099 them at the end of the year, and could even do an independent contractor agreement. That way I wouldn't have so much to worry about, with getting workmans comp, payroll and everything. Has anyone done anything like this before? I'd like to hear any advice that anyone has....Pro's or Cons.

Thank You
 

MOturkey

LawnSite Silver Member
Location
Bolivar, MO
Well, I'm sure guys with a lot more expertise in this area than I are going to respond, but I'm thinking your attorney is giving you some bad advice, simply because I don't think you can do this legally. To be classed as an independent contractor, the individual has to work on their own, not for you using your equipment, etc. As an independent contractor, they would also be responsible for liability insurance, as yours would not cover them in case of property damage or bodily injury from an accident.

I suppose, theoretically, you could sub out the trimming, edging, etc, on a job to another LCO, but it is unlikely such an arrangement would work very well. Someone else might give you other information, but this is the way I understand it.
 

Crimson Lawn

LawnSite Senior Member
MOturkey is right. The only legal way on 1099 is for him to have his own equip and Ins.
Look at the cost of selling him one of trimmers and General Liability vs payroll matching taxes. Remember you will pay more on the SS benefit than him also.
 

Attorney-at-Lawn

LawnSite Member
Location
Southern Indiana
Your other alternative is to go through a local temp service. Then all work comp, payroll and other various paperwork headaches aren't your problem. Pay a little higher hourly price, but alleviate a lot of bookkeeping hassles. Plus you'll get invoiced quite nicely from the temp service for easy tracking of labor deductions for tax purposes.
 
OP
J

jrsimpson77

LawnSite Member
Location
Utah
Yeah, I've never heard of using a sub without their own tools and equipment. I always thought you had to be a licensed business to do sub work, but the attorney got me thinking he was right. Just new to the whole having to hire someone, guess It's a good thing, but damn so much stuff to get worked out.
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