Question on paperwork/pay for temp workers
jrmvt
21 Posts
We're a wholesale nursery and could use a few extra hands from time to time. We have a customer who is a small Landscape Maintenance company who has some employees who are looking for extra work. The owner of the landscaping company has agreed to bring her crew over to our nursery in the evenings to work for a few hours. She would work with them to handle translation, as her employees are all Hispanic.
We're only talking about 5-6 workers for 2 or 3 evenings, a few hours each evening. I think there is a regulation that states if someone doesn't earn more than $XXX per year, you don't need to withhold taxes. Anyone know what that amount is? Would we need them to fill out all of the employment forms? Would we be better just paying the Landscaper (if she agrees)?
Thanks!
We're only talking about 5-6 workers for 2 or 3 evenings, a few hours each evening. I think there is a regulation that states if someone doesn't earn more than $XXX per year, you don't need to withhold taxes. Anyone know what that amount is? Would we need them to fill out all of the employment forms? Would we be better just paying the Landscaper (if she agrees)?
Thanks!
Comments
Yes, see yesterday’s discussion concerning Employees vs. Independent Contractors.
As far as you withholding question is concerned, the rule of thumb is that if an employee is going to earn less than the personal exemption and standard deduction amount listed on an IRS 1040, he/she can declare themselves as Exempt from withholding. I believe that the current minimum filing amount for singles and students (the earnings amount below which withholdings are not required) is $7,950.
However, your post states that the individuals in question will also be working for a landscaping company in addition to some part time work for you -- so I'm thinking that in the aggregate they will not qualify to select "Exempt" on the W-4 that they complete for you regardless of the minimum number of hours you have planned for them.
That said, I think you take the previous poster's advice and pay the landscaper directly.
Geno, SPHR
Right now, I'm leaning towards the 1099 route.
There is no "mix" if they work for you in addition to working for the landscaping company as far as OVERTIME is concerned. They are starting with a clean slate when they show up at your place as YOUR employee.
The employee can work 40-hours per week for you and 40-hours per week for someone else and no one has to pay overtime.
It is the moonlighting employee seeking the Exempt-from-withholding status that need consider his/her aggregate wages.
Geno
Otherwise, it's correct. No overtime is due from jrmvt's business.
As some have said on this forum the documents may not be worth the paper they presented on, but at least you will attempted to do what is right and fair. If you have work to be done, why not hire part time US Citizens, especially if they have been displaced from this part of the country.
Welcome to the forum. My e-mail is open if you have any other concerns in this area.
PORK
E Wart
When you package this whole scenario, I think you'd be much better off hiring part time, temporary help whom you know to be legal.
If you employ the landscaper as an independent contractor, which you might get by with, you might also get by with not even worrying about the legality of the Spanish nursery laborers. But, then, that's what Wal Mart thought too.
Let the withholding forms and your payroll software worry about calculating the Fed and any State Income Tax Withholdings. If they overpay, they can get the dollars back when they file their 1040's.
I would not treat them as independent contractors.