Why America is great-God Bless America

[Gary and Alla 3,694]

depends on state

I pay a guy that may or may not be legal 18 bucks an hour. he said he was legal. I figure at that rate I am not exploiting anyone.

Yeah, you are.

Let's assume he is a legit independent contractorand you are not just circumventing the law bu "saying" he is a contractor.

Of the $18, 15.6% right away goes to Medicare and SS...$2.81/hr. So lets round that off to $15/hr in his pocket. Any legal contractor will tell you that his profit is not going to be more than 1/3 his rate. He has to deduct for his own benefits, his truck, tools, insurance (liability at least, workman's comp if he has a brain) gasoline and maint for the vehicle, yada, yada.

So basically, IF he is legal and legit, he is making $5/hr to take home and buy his house, groceries, etc.

Bullsh*t. You know as well as I what you are doing is not legit and he is not legal. You don't care and neither do i, actually, but you are employing him for the same reason 11 million others are employed...to save money. To avoid expenses of employment imposed on you. I don't blame you. You can do math.

In order to fix this, if we WANT to fix it, we need to make you AFRAID to do this and make it the best business decision not to do this.

FWIW I doubt that the Burlington area has a higher pay scale than Atlanta, it is not a high paying area, but a legit carpenter around here goes for $65 per hour and not less. Some fetch $85. That is a professional, insured, equipped carpenter with tools and vehicle and usually a job trailer he tows to the site. A "laborer" with few tools and skills and maybe not a vehicle, gets $28-30/hr. A "maid" to clean a house gets $30 per hour. They usually have a vehicle and equipment. There are no "licenses" for these trades in Vermont. Anyone with a hammer can be a carpenter. The only requirement under state law is that you have your own liability insurance. If you provide a person with more than 40% of his income, he is considered an employee by the state and you need to have workman's comp insurance for him. How they enforce that is anyone's guess. (If he loses another client, he becomes YOUR employee?)

Whether he is legally here or not, you are exploiting him. If he is legal and does not realize he is being exploited, he is too stupid to be anywhere near your property.

[Ban Hammer 13,349]

Doesn't do what you think it does. You won't find a contractor for $18/hour and the IRS knows this. Enjoy your audit.

aren't independent contractors responsible for filing and paying their own taxes and ss?

[spookyturtle 9,466]

aren't independent contractors responsible for filing and paying their own taxes and ss?

They are where I live.

[I AM NOT THAT GUY 5,715]

aren't independent contractors responsible for filing and paying their own taxes and ss?

Only if they are independent contractors according to the IRS. That is one of the most abused parts of the tax code, the IRS knows it, and does pursue it. The IRS assumes they are employees, and it is up to you to demonstrate otherwise.

If they are indeed contractors, and you pay them more that $600 in a year, you are required to report those payments to the IRS on a 1099. To fill out the 1099, you will need an SSN, an EIN, or an ITIN. If the number the "contractor " gives you doesn't match the name of the person you are reporting, that will also generate an audit.

Edited August 4, 2013 by The Patriot

[I AM NOT THAT GUY 5,715]

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Defined

[Ban Hammer 13,349]

Only if they are independent contractors according to the IRS. That is one of the most abused parts of the tax code, the IRS knows it, and does pursue it. The IRS assumes they are employees, and it is up to you to demonstrate otherwise.

If they are indeed contractors, and you pay them more that $600 in a year, you are required to report those payments to the IRS on a 1099. To fill out the 1099, you will need an SSN, an EIN, or an ITIN. If the number the "contractor " gives you doesn't match the name of the person you are reporting, that will also generate an audit.

good to know, ty.

[I AM NOT THAT GUY 5,715]

good to know, ty.

If you are not flipping houses, then you probably are not affected by the above, if you hire a contractor.

[Gary and Alla 3,694]

aren't independent contractors responsible for filing and paying their own taxes and ss?

Yes. But you cannot just wave a magic wand and someone becomes an independent contractor. There are standards applied by the feds for taxes and standards (possibly different) applied by states for workman's comp. It is not OK to just say "I am an independent contractor"

Some businesses it is pretty clear who is an independent contractor. Others, not so much. The terms are heavily abused in construction and maintenance businesses. It used to be very common in the exotic dancer business to calim the dancers were "independent contractors" (oh rly?) but they cracked down on that (pardon the intended pun)

Typically a legitimate contractor has other clients, advertises to other clients and seeks other business. He rovides tools and materials (bills for the materials) has insurance, vehicles, etc., all his own. He makes his own hours, within reason of course, and he is not directed in his work by the client other than to deliver what he agreed to.

It is possible to be both an employee for an employer and an independent contractor (side jobs, weekend work, etc)

[Darnell 8,478]

depends on state

I pay a guy that may or may not be legal 18 bucks an hour. he said he was legal. I figure at that rate I am not exploiting anyone.

When I seek a crew for home repair, I always seek an AA crew. I refuse to hire anyone Latino-ish , it's just too big of a risk for me.

12 houses later, never had an audit.

I note I have given preference to father-son crews, and will continue to do so in the future. Also, my preference has always been to hire surgeons for the rehab, I refuse to hire butchers. Goes right along with my reclamation and re-use mantra, each and every time.

Edited August 4, 2013 by Darnell

[Gary and Alla 3,694]

When I seek a crew for home repair, I always seek an AA crew. I refuse to hire anyone Latino-ish , it's just too big of a risk for me.

12 houses later, never had an audit.

I note I have given preference to father-son crews, and will continue to do so in the future. Also, my preference has always been to hire surgeons for the rehab, I refuse to hire butchers. Goes right along with my reclamation and re-use mantra, each and every time.

So you are racist? Isn't it illegal to discriminate based on race or nationality?

I have no problem with increasing the risk for hiring illegals, but Latinos are not necessarily illegal. So if I had a business with my son, you would not hire me? Because I am white?

wait...what...MARVIN!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[Darnell 8,478]

as a private entity, O Gary - I can realize my preferences anytime.

in fact, I recruit through AA churches...

[Gary and Alla 3,694]

as a private entity, O Gary - I can realize my preferences anytime.

in fact, I recruit through AA churches...

Wait, so I can marry a Ukrainian and no one can say sh*t about it? I have that choice? I was going for a Czech, I was recruiting in the Prague Airport...should be safe, right?...and scored a Ukrainian. Who knew? But good to know that I can decide these things for myself and not be a racist.

[The Nature Boy 4,224]

Yes. But you cannot just wave a magic wand and someone becomes an independent contractor. There are standards applied by the feds for taxes and standards (possibly different) applied by states for workman's comp. It is not OK to just say "I am an independent contractor"

Some businesses it is pretty clear who is an independent contractor. Others, not so much. The terms are heavily abused in construction and maintenance businesses. It used to be very common in the exotic dancer business to calim the dancers were "independent contractors" (oh rly?) but they cracked down on that (pardon the intended pun)

Typically a legitimate contractor has other clients, advertises to other clients and seeks other business. He rovides tools and materials (bills for the materials) has insurance, vehicles, etc., all his own. He makes his own hours, within reason of course, and he is not directed in his work by the client other than to deliver what he agreed to.

It is possible to be both an employee for an employer and an independent contractor (side jobs, weekend work, etc)

exactly . My guy works for many different people. Hardly an employee. What goes on between him and da gumberment is his biz.

[Darnell 8,478]

Wait, so I can marry a Ukrainian and no one can say sh*t about it? I have that choice? I was going for a Czech, I was recruiting in the Prague Airport...should be safe, right?...and scored a Ukrainian. Who knew? But good to know that I can decide these things for myself and not be a racist.

Wait? Huh ?

I ain't waiting for sh|t, and neither should you.

If'n you need to marry another Ukrainian, I suggest you make sure you marry the one that Alla chooses for you.

[I AM NOT THAT GUY 5,715]

exactly . My guy works for many different people.

Multiple employers. Latinos typically work several jobs at once, spend only enough money to stay in tortillas and beer, and send the rest back home to keep the family farm going. When he has enough sons working in the US, he will retire back to the farm in style.