How To Pay Those Who Work On My Rehabs
I intend to always do all with integrity. I also like to help the less fortunate. In doing the work of rehabs, neighborhood losers show up, asking if they can help, or I am hiring. Or they just "need a couple of dollars."
How do I stay legal while paying for a man to haul brush or load shingles on the truck, or wash woodwork, just for an afternoon?
If a man stays with me, working daily for a week or two, what are my options to keep my paper life simple and keep legal, and not encourage the bum to be illegal?
How do I pay, and what records are necessary? What do you do with temporary help?
Thank you all for being there! 
Dan
[addsig]
I doubt that you could encourage the "bum to be illegal." No doubt, they are not paying taxes anyway, but if you could wangle a SS# out of them, you could issue a 1099 to their last known address. That would at least allow you to claim the expense.
Yo, check it. My moms an IRS agent so I asked her what you could do. Basically, unless the guy makes $600.00 that day you don't have to worry about it. You are not required to submit any information to the IRS UNLESS you are paying out $600.00 or more. Since the guy is only working for one day, I doubt you have to worry about that.
However, if you want to claim that loss of income for the day on your tax returns at the end of year you are going to have to fill out a 1099. If that is something you want to do, the easiest way of doing it is to just keep a couple of 1099 forms in your car and when you pay the guy at the end of the day just fill one out and save your copy.
That's it dude. Unless the guy makes 600.00 bucks in one day you don't have to worry about it!
Signed,
Son of an IRS agent (collections no less)
You can still use it as a write off if you give him a piece of paper and ask him to write you out a bill/invoice. I've used people like this a lot and if I have a written record of payment, (you write out a bill and have them sign it as payment received), my accountant considers it a valid receipt for services. Make sure the bill/invoice is detailed regarding services rendered, amount paid, etc...
Good luck,
Noel
[addsig]
Two things you might want to keep in mind and check out, besides tax & unemployment issues:.
1. Don't become employer, but keep your job on "contractor" level, letting worker figure out for himself when, what tools to use, what day, what hour if at all reasonable, etc.
Reason is, the more you control the person and details of how he/she performs the job, the more it sounds, legally, like an employer/employee, which I'd advise you to avoid because of possible Workers' Comp issues.
I don't know VA WC law, but do know some states might have you becoming employer, and which might make YOU responsible for providing him/her with WC benefits (lots of $$$ these days) if he claims on-job injuries.
So check with State of VA, WC division, and see what their rules & laws are and what you have to do to avoid the WC scene totally.
2. Check with Temporary Worker agencies, which, I suppose, are everywhere and in every state, like "Labor Ready", a co. that's local to me, here in Tacoma WA.
These co.'s take care of the WC & unemployment on their own, with no help or risk to youproblem for you, and provide as much or little help, on short order basis, as you want.