Do I need to Withhold Taxes for a Part Time Helper

[bunky]

I seek advice about hiring a "Personal Assistant" or "Intern" or "Part-Time Employee" in New York State with respect to tax withholdings and unemployment insurance etc. I'm a musician starting a music licensing company and record company and I'd like to get some administrative help for about 3-4 hrs a day for about 3 days a week for starters. I'm thinking of paying this help $9 or $10/hr. The post would last about 3-4 months. Then it might kick up again 3 months later either with the same "helper" or with a different one.

My questions is:

- Do I need to withhold taxes etc. from their pay? Ideally I'd like to pay them in cash or company check but would like to avoid setting up a whole payment system where I print checks and have to calculate tax withholdings and unemployment insurance etc. just for one part time "helper". Is there any way to avoid having to get bogged down w/implementing a payroll system as I make baby steps to get my company off the ground?

I thought of having them sign a 1 paragraph statement that says they're an independent contractor but I'm not sure that's good enough to keep me out of trouble. I do intend the checks (or cash) to come from a company and not me personally.

Thanks for reading! Any suggestions, links, or phone numbers to knowledgeable government officials etc. would be greatly appreciated.

 

[Patricia_Young]

Yes. The number of hours worked are irrelevant when it comes to classifying workers. This person would be your employee, no question about it. Having that person "sign a statement" will do you absolutely no good if you are found out. Are you going to have a bookeeper or accountant? That could be their job to do.

 

[bunky]

Ok, Thanks for the info. I'll talk to the guy who does my personal taxes and see how much that'll cost me. Seems a shame I have to pay someone just to pay someone when I'm so small. Thanks though!

 

[bunky]

Oh wait, does the amount of $$ this employee would make totaled make a difference? For example, a friend of mine once didn't have to pay taxes b/c she made less than $7000 in a year if I remember correctly. Does that make a difference?

 

[Patricia_Young]

No, it does not. A worker is automatically deemed an employee unless they meet the criteria for independent contractor status. If you're telling this assistant what to do, how to do it, when to do it, providing the supplies for the worker to do it, etc., the worker is an employee, period.
http://www.irs.gov/pub/irs-pdf/p1779.pdf

 

[bunky]

Ok, thanks. I'll talk to my tax guy and check out online payroll systems from Intuit and Bank of America. Thanks again.

 

[Patricia_Young]

Ok, thanks. I'll talk to my tax guy and check out online payroll systems from Intuit and Bank of America. Thanks again.

Don't know what your bookeeper will use, but both Intuit and Peachtree have basic payroll software.

 

[army judge]

There is another legal option.
You could arrange to hire a 'temp' and the 'temp agency' pays the person.
You pay the agency on their invoices.
It is much easier for what you're trying to do.
Manpower, Kelly, and other agencies come to mind.

 

[Patricia_Young]

There is another legal option.
You could arrange to hire a 'temp' and the 'temp agency' pays the person.
You pay the agency on their invoices.
It is much easier for what you're trying to do.
Manpower, Kelly, and other agencies come to mind.

Good idea.