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Im thinking of hiring a person who is advertising himself as an available "day laborer" on a per-job basis.

I am assuming this person would want to work for cash, and that is appealing to me because then I would not have to deal with withholding taxes or any of the other employer - relationship type things.   Which sounds appealing to me for those reasons, but I wonder, is it "legal" to do this? 

I would probably only have the laborer do ground work, such as the watering ground-man, so really no risk there, but what if, say, the guy claims an injury... maybe gets SH in the eye, or a tree limb hits him or whatever.

Can any of you shed some light on this type of per-job cash only employee, if you have ever done this, would recommend against it, etc etc etc.

What about tax consequences for me?

Im not to the point where I want to hire any permanent employees yet.

Thanks for any input you all can provide.

 

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There is always risk when people are involved.  You are better off hiring through a Temp Agency, around here there are a few that are geared more towards day labor entry level type work.  When doing this the Temp Agency is effectively the employer and takes care of wages, taxes and insurance necessary by law and bill you accordingly.  Check it out, it's usually not cost prohibitive and it keeps you legal.

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It's a liability.  lots of guys will work day labor for reasons that keep them from getting legitimate jobs.  There's NO telling what's going on with them, drugs, wanted by the law, illegal resident, whatever.  I have seen guys claim an injury on a job for Workers Comp.  

As far as legality goes.  Yes, it's illegal for you to hire an employee and not get an i-9 and a W4 at least, and then withhold the appropriate taxes.  If you're hiring them as a subcontractor, it's a little different, but you've still got to account for where your money goes and if you're insured, you've got to make sure any subs have their own workers comp or it's on you.  Also,  it is in your best interest to hire actual temporary employees and do all the paperwork since their pay is an expense against your profit (less taxes on you). 

Plus my accountant tells me to NEVER do anything with cash. 

Like Jim says, I'd rather hire a retired guy, a college student, or a temp employee who only wants to work a few hours a week, and make sure it's all above board.  

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If you do hire someone, other than an actual employee, make sure they sign an INDEPENDENT CONTRACTOR AGREEMENT. It should clearly state they are not an employee but they are in independent contractor responsible for their own WCI. BTW if they are a one may show, they do not need WCI. if they do get injured, they cannot sue themselves.

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