Investor · Minnesota/Wisconsin/Iowa · Member since 2019 · 49 posts · 77 votes
Hello everyone!
My on-site park manager gets free lot rent, and also sends me a timecard every month. The timecard logs the hours he spent mowing community areas / shoveling snow in the winter / taking care of trees or picking up trash. These are things I authorize him to do. Typically this adds up to $350-$400 per month or less at $15 per hour.
Would you be willing to pay him cash? He is good honest worker, and an asset here in my business. So I wouldn't mind doing what I can to setup this up beneficially for him (legally), and I understand why he would prefer cash if possible. He said if I need to log this as a 1099 he would understand. Have you guys come across this and found the best solution for your business? I don't have any employees currently, but this is starting to feel like that and I'd prefer it doesn't turn into that. Should I ask him to form an LLC for property management and pay him through this? That's a thought I came up with while typing this.
San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
6y
I think you should talk to an accountant. The problem is, if he is ever hurt while working for you, he's going to expect workers compensation, unemployment, etc., etc. And you want to be able to deduct what you can.
Medford Oregon · Member since 2019 · 85 posts · 65 votes
6y
If he is looking for cash and park rent he probably doesn't want to establish a business. Who's equipment is he using to maintain the park? If you are providing the tools and direction, he would more than likely be considered an employee. Workers comp is also something to consider, as mentioned above.