| In years past, you would often overhear | | | | the IRS as income, you (most certainly) will be paying |
| conversations in places like beauty salons, community | | | | for that worker's retirement also. Not today but |
| clubhouses, cocktail parties and fancy restaurants | | | | when they retire and realize that they have little or |
| that would start something like this... | | | | nothing in their Social Security retirement account to |
| "Wow, I just found the best housecleaner and...they | | | | live on , they will go on any one of a number of |
| are really cheap!" | | | | public assistance programs that your hard earned tax |
| This conversation was usually one of the ladies (or | | | | dollars (remember them...there the one's you worked |
| gentlemen) boasting about the cleaning person they | | | | for and paid taxes on years ago...) will be paying for. |
| had just hired to clean their home and this home was | | | | When hiring an uninsured worker, you become |
| usually located in a high-income neighborhood | | | | responsible (technically) for any medical expenses for |
| because, after all, years ago only the wealthy could | | | | "your employee" should "your employee" become |
| afford hired helpers in the home. | | | | injured while working in your home. In most states, |
| Well...times have changed...kind of... | | | | you "should be" paying workman's compensation |
| The days of only the wealthy using hired help inside | | | | insurance for "your employee". |
| the home are gone! It's not that the wealthier don't | | | | When hiring an uninsured worker, you will assume all |
| use housecleaners any longer, it's the fact that | | | | liabilities for damage, breakage or theft of anything in |
| today's average homeowners (especially the two | | | | your home. This may not sound like much of a liability |
| income earner households) are seeking outside help | | | | on your part but...remember we mentioned, |
| with home maintenance because of time constraints, | | | | "experienced" earlier? Inexperienced people can, and |
| lack of energy to clean after putting in a 40+ hour | | | | do literally thousands of dollars worth of damage to |
| workweek, etc. The market for independent cleaning | | | | the many new surfaces in today's homes. Things like |
| contractors has skyrocketed over the past 10-15 | | | | marble, granite, hardwood flooring, fiberglass tubs.... |
| years! | | | | and the list goes on and on and on. |
| Along with this "boom" in demand has come the | | | | Oh, one other thing...you are breaking the law by |
| "boom" in independent contractors who are working | | | | hiring these individuals. Unwittingly (or maybe |
| without occupational licenses, insurances and may well | | | | knowingly) you have become "complicit" in tax |
| lack the experience needed to "safely" clean the | | | | evasion, operating (in most municipalities/states) an |
| many varied surfaces that exist in today's homes. | | | | unlicensed business and, in some states, operating a |
| The industry refers to them as...Trunk Slammers. | | | | business without adequate liability insurance or |
| When a homeowner (especially those homes where | | | | workman's compensation insurance. Claiming ignorance |
| both parents are working full time just to cover | | | | of your cleaner's business status will not help. You as |
| expenses) goes looking for help with home | | | | the purchaser of services are responsible to |
| maintenance, "price" is always a huge part of the | | | | investigate the legal status of "any" outside |
| decision on just who will be hired and...there's nothing | | | | contractor who performs "any" services on your |
| wrong with that...provided the potential consumer | | | | home and you should never be afraid to ask for |
| "knows what they are paying for" and..."the possible | | | | documentation from those service providers. |
| liabilities they are exposing themselves to" when | | | | (Remember the old "Caveat-emptor" phrase...its true!) |
| selecting a cleaning service provider based solely on | | | | "Yeah"...you're saying..."I know all this stuff already and |
| price. | | | | anyway, no one ever gets caught for this kind of |
| What liabilities? | | | | stuff!" |
| When hiring a worker who is working for "under the | | | | I say..."Oh Yeah"...a little research on the subject (your |
| table" wages that are not going to be reported to | | | | Due-Diligence) will quickly reveal that people, often |
| the IRS as income, you (technically) become that | | | | unsuspecting people, are being caught and fined |
| worker's employer and (technically) you become | | | | everyday of the week on just these circumstances. |
| responsible for income, Medicare, social security and | | | | Check with the IRS if you don't believe me. |
| unemployment taxes at the Federal level and, | | | | The whole matter becomes an especially "different" |
| depending on the state you live in, may be | | | | kettle of fish if your worker/employee is also an |
| responsible (technically) for some of the | | | | undocumented alien but...that's for another letter. |
| above...again...at the state level. | | | | Makes you wonder...is that $20/$30 difference in |
| When hiring a worker who is working for "under the | | | | rates really worth the risk(s)? |
| table" wages that are not going to be reported to | | | | Your money...your decision. |