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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.

I hope this was helpful!! If you have any other questions feel free to email me again.


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Kristen Mulcahy, CIC


My specialty is commercial insurance for business owners. I can answer questions regarding liability, property, auto, workers compensation, directors and officers, umbrellas and risk management for all types of businesses. Risk management, or loss control, is taking measures to reduce the chances of a loss in the first place or, helping to prevent a loss from happening again. Insurance can be complicated and confusing and there are no stupid questions! I am President of Western States Loss Control, Inc. and we provide insurance consultations to business owners and surveys/inspections for insurance companies in all states West of the Mississippi.


20+ years of industry experience.

Past President of SCIP Southern Connecticut Insurance Professionals, a chapter of International Association of Insurance Professionals.

Certified Insurance Counselor, 2001.

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