Property & Casualty Insurance/hiring a HOA Maintenance man
Our HOA complex is in Arizona and 50 years old. There are many minor repairs a maintenance man could do for us. We want to hire someone for 30 hours per month (one day a week). It is clear that we want to pay by the hour, and have him work from a list. We would give him a $100 debit card to purchase supplies on.
I have investigated, and our liability insurance agent can add WC for him. What else do we need to do before we can put him on the payroll and start work?
Am I right that he is an employee, not an independent contractor?
What would determine that difference? What would we need to do for payment details for each.
PS: We have tried using the Management company's maintenance employee ($50/hr), and found his work to be sub standard and expensive.
Lucy, so sorry for the delayed response, I didn't get notification that there was a pending question until today. Okay, the IRS has a definitive guideline as to who is an employee and who is an Independent Consultant or Subcontractor. You can find that information on the IRS website but the main thing is if he has a schedule, has to be at work on this day, by X time and can leave at Y time, even if it's only 1 day a week, he's an employee. If he's given a list and can show up when ever he wants on his own schedule, then he "could" be considered an independent contractor. You'll have to consult the IRS guidelines and compare with your plans. If he's an employee, you're going to have to give him paychecks, deduct taxes, Social Security, etc... Check with your CPA for specifics on that aspect. If you find a "handyman" that's a licensed contractor, he should have his own Workers Comp so that might be something you want to ask. Also, as you know, in AZ, you have to verify the person and be sure they are a US Citizen as well. Here's a link to the information on the IRS website. http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contr
I hope this was helpful!! If you have any other questions feel free to email me again.