independent contractors

[slinger2k]

Looking for any guidance with regard to bringing aboard an IC. An older family friend would like to work for us PT (he's a retired tradesman). He would be ultra low maintenance and he already has a small base of referring real estate agents.

Do you pay differently based on sphere of influence (we give him work vs. he finding work on his own). What is the "standard" cut given to the IC? Thanks.

[Scottpat]

You need to look at the IRS rules and what they consider to an independent contractor. You might be surprised.

[Steven Hockstein]

I have been through this discussion with my accountant. To be an independent contractor you cannot be their only source of home inspection income.

I can only assume that you would not be comfortable with allowing someone to work for themselves and/or your competition while they worked for you at the same time.

Additionally, if they do not pay taxes on their earnings and if the IRS wants to bust your balls, you can end up being responsible for their unpaid taxes if the IRS can show that they were essentially an employee that you call an independent contractor.

You may also have issues with your insurance coverage.

Bottom line-hire him as a part time employee. It really does not cost that much more if you are not offering benefits.