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Non-Employee Worker Question.

681 views 20 replies 15 participants last post by  jlh 
Speed_Addiction said:
I have a kid who works for me part-time. He is on some program that will pay him the difference for 40 hrs a week if he works at least 15. I was keeping him off the books but now he needs documentation. Can I keep him as a non-employee worker but list him as a business expense? Or do I have to deduct FICA and all of that other shit. Anyone?
The difference between an independent contractor and an employee:
http://www.alllaw.com/articles/employment/article5.asp
http://www.jobsearchtech.about.com/library/weekly/aa121800-3.htm

I've run into this issue a number of times. Not so much an audit you should worry about, but that the people running the program will figure it out in a heartbeat. I used to participate in something similar where 1/2 of my wages and expenses were reimbursed if I hired "special" people. If he were an older retired person working part time, the IC thing could fly.

Re the IRS, in your kind of business it would be almost impossible to classify him as an independent. Don't take the risk to yourself. If the kid is worthwhile don't penalize him by letting him go. Put him on your books. Letting him go would only teach him that doing things right ends up in him getting screwed.

Excessa is right, tho, in that you should be ready for anything...yesterday.
:p
 
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