I opened a mechanic shop in January of this year and am in need of a laborer, but dont want to have to pay employment taxes or buy workmans comp at this time, how do i go about hiring a contract laborer? Maybe next year if the money is coming in good I can hire as employee and pay taxes and stuff.
2007-10-08 06:38:20 · 3 answers · asked by smi_le_y 2 in Business & Finance ➔ Taxes ➔ United States
You can't, legally, if you set the terms like when the person is going to work and where, and what they're going to work on and how. They are then an employee, and you aren't allowed to classify them as a contractor.
If the person just rented space in your shop, but you didn't direct what they did or when they did it, then they might be a contractor. But from your description, that doesn't sound like your situation.
See http://www.irs.gov/businesses/small/article/0,,id=99921,00.html
2007-10-08 06:47:07 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
Are there any employment agencies in your area that could supply you with the labor you need? They would take care of the employment taxes.
2007-10-08 07:45:37 · answer #2 · answered by Chaney Lake Girl 2 · 0⤊ 0⤋
Also if they use your tools, they have to be an employee. How bout part-time?
2007-10-08 09:51:36 · answer #3 · answered by towanda 7 · 0⤊ 0⤋