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Financial Planning / Tax Strategies
|Subject: Re: responsibilities for labor from Craigslist||Date: 2/24/2013 12:23 AM|
|Author: katiewa||Number: 117868 of 124795|
Are you considering deducting the expense, like is it for a rental property?
Yes, this would be to prepare a potential rental property for renovation. The tasks they will be performing are well within the abilities of any of the farm kids around here (most of the high school kids advertising for work appear to fall into this category), and should present little problem for any of the college kids. While I plan to inspect the work, I will be busy with my own tasks and don't anticipate much supervision. (Another benefit of small towns--I can check with several of the high school teachers, as well as college instructors, regarding work ethic.)
They might be required to have a business license in Id. in order to be independent contractors.
I do know that contractor registration is required only if work done exceeds $2000. Will look a bit more into whether the business license would be required for small jobs.
Here in WA this type of work is sales taxable. So if they were contract labor they would have to collect and pay sales tax. I don't know the rules about this in Id.
In Idaho at this time, most services are not subject to sales tax.
One other thing to consider is insurance. What happens if one of these workers gets injured while working?
Will look into this, although basic personal protective gear will significantly minimize risk of injury.
It does appear that I would need to restrict the under-18 kids to approved power tools, and possibly limit any demolition activities.
Will continue to do some reading on this--still have several months before any work could be done. If necessary, I could run them through a temp agency we used when we built our house--temp agency took care of all the taxes, insurance, etc. Very convenient.
Thanks for the info.
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