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whats better?

Discussion in 'Lawn Mowing' started by woodie08, Feb 25, 2008.

  1. woodie08

    woodie08 LawnSite Member
    Messages: 53

    to hire employees or sub contract somebody. they would use my truck and equipment thats insurade. if ya sub it, you dont have to worrie about pay roll taxes.workers comp.and other things. whats realey the pros for employees vs contract? it just sounds easy to cut a check for hrs worked and let him figure out his taxes. I'm only looking to hire one person if that makes a diffrence?
  2. barefeetny

    barefeetny LawnSite Senior Member
    Messages: 533

    a sub can't use your equitment... then they are an employee

    a sub has their own isurance and equitment... there are people that can explain this in detail
  3. ed2150

    ed2150 LawnSite Member
    Messages: 174

    IRS Publications 15 and 15A provide some info about this if you can look on the IRS web site.

    Basically, though, if you control when and how the person works and how they do their job then they are considered employees by IRS definition and you must withhold taxes.

    In addition, if they are using your vehicles and equipment and not their own (as mentioned in the post above) the IRS would for sure consider them employees and not contractors.

    Witholding taxes might be a bit of a hassle, but not nearly as bad as dealing with the IRS if you don't do it the right way.
  4. woodie08

    woodie08 LawnSite Member
    Messages: 53

    thanks guys
  5. mag360

    mag360 LawnSite Silver Member
    Messages: 2,445

    I remember an article in turf mag a few years ago about a husband and wife team who subcontracted mowing.
    In the article they said they provided a trailer, dixie choppers, and 2-cycle stuff---the subs used their own truck + fuel and was paid 1/2 the net on the route.

    Not sure what became of them or if they were aver a part of lawnsite.
    Anyone else remember that article? (turf northeast I guess)
  6. pclawncare

    pclawncare LawnSite Senior Member
    Messages: 991

    I dont know about the couple but FedEx just got in HUGE trouble with the IRS for basicly calling their drivers independant contractors and not paying their half of the taxes while the drivers used their trucks, operated under their rules and hours, and wore their uniforms. For 2003 i believe i read they will owe somewhere in the 400 million range for 2003 alone and the IRS is still investigating what they will owe for 2004-2007. All i know is that i would be very carefull when messing with the IRS. Some people can run and hide but they almost always loose in the end.

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