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Subject: payroll, tax service
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Author Messages
TV
(Washington)

Posts:91


09/07/2021 2:00 PM  
Hello

we currently have one employee so we are looking to manege them ourselves; time keeping, pay, taxes, UI, PTO.

any suggestions for software/ or service (ADP?) that would be easy to use
JohnC46
(South Carolina)

Posts:11659


09/07/2021 2:04 PM  
Pay them as a contractor and let them worry about taxes, etc.
PatJ1
(North Carolina)

Posts:290


09/07/2021 2:56 PM  
What type of work are they doing?

If you determine that they are an employee vs. a contractor (1099), I recommend a payroll service such has ADP, Paychex, or perhaps a local service.

Workman's compensation may not be required, but should be seriously considered.


Board members are volunteers. Many have no idea what they're doing. Educate them. Don't beat them up.
TV
(Washington)

Posts:91


09/07/2021 2:59 PM  

they are simple labor/helper/cleaner. manual labor, mostly cleaning
AugustinD


Posts:1901


09/07/2021 3:01 PM  
Posted By PatJ1 on 09/07/2021 2:56 PM

If you determine that they are an employee vs. a contractor (1099), I recommend a payroll service such has ADP, Paychex [snip]
This. A few more: https://www.quicksprout.com/best-online-payroll-services/

I have a report of a family using one of these online services to pay a home health care worker for an elderly relative. They love the online service. For folks unsophisticated in FICA et cetera taxes, the service does a lot for the money it is paid.
PatJ1
(North Carolina)

Posts:290


09/07/2021 3:05 PM  
If you decide they are a 1099 contractor, make sure they carry their own worker's compensation. Otherwise if something happens to them the liability is on the HOA.

Board members are volunteers. Many have no idea what they're doing. Educate them. Don't beat them up.
MelissaP1
(Alabama)

Posts:10584


09/07/2021 4:33 PM  
I considered doing this with someone who basically did a lot of the "handyman" work. He was a member of the HOA as well. It was a bad idea to "forgive" their dues in return for services. NEVER EVER do that. 1099 is the way to go IF you decide to do this. However, I think it's really better to hire this person if they have their OWN business license/insurance. They can always incorporate themselves or get a business license/insurance. It would benefit them in many ways.

I find now a days you can find services you need by going to something like "Angie's list" or the BBB. Let them handle all the ramifications of taxes, insurance, and payroll.

Former HOA President
MichaelH35
(Wisconsin)

Posts:2


10/04/2021 4:51 AM  
It is not a very difficult situation, and I hope the employee will be able to find a solution. What is he doing? I
MichaelH35
(Wisconsin)

Posts:2


10/04/2021 6:21 AM  
If he’s a resourceful type of person, he can use online applications for managing salaries, taxes, duties, and everything related to income/expenses. I decided I wanted to take care of these tasks myself. This way, I learn something new and it’s easier for my boss. I tried several applications, but I landed on ThePayStubs since it’s the most intuitive in terms of user-friendliness.
BarbaraT1
(Texas)

Posts:588


10/04/2021 7:20 AM  
Posted By PatJ1 on 09/07/2021 3:05 PM
If you decide they are a 1099 contractor, make sure they carry their own worker's compensation. Otherwise if something happens to them the liability is on the HOA.





The IRS decides whether someone is a 1099 contractor, and no one else.

"Just make them a 1099 contractor" is very dangerous advice.

If the association asserts any kind of control over how and when and where the manager does their job, they are an employee, not an independent contractor. The penalties for skirting employment tax via 1099 are steep and not worth it.

BarbaraT1
(Texas)

Posts:588


10/04/2021 7:23 AM  
Posted By BarbaraT1 on 10/04/2021 7:20 AM
Posted By PatJ1 on 09/07/2021 3:05 PM
If you decide they are a 1099 contractor, make sure they carry their own worker's compensation. Otherwise if something happens to them the liability is on the HOA.





The IRS decides whether someone is a 1099 contractor, and no one else.

"Just make them a 1099 contractor" is very dangerous advice.

If the association asserts any kind of control over how and when and where the manager does their job, they are an employee, not an independent contractor. The penalties for skirting employment tax via 1099 are steep and not worth it.





Sorry - missed where this was a handyman not a manager. Same principle applies. You should look up the IRS rules for 1099 status (and any relevant state laws as well).
LetA
(Nevada)

Posts:1462


10/04/2021 12:43 PM  
Posted By TV on 09/07/2021 2:59 PM

they are simple labor/helper/cleaner. manual labor, mostly cleaning





You should seriously consider farming that out to a contractor like a janitorial service, landscaper etc. Put the burden of taxes, unemployment, workers comp on the back of the contractors not your fellow owners.
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