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Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

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Old 02-13-2018, 08:39 AM
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dontknow dontknow is offline
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Default Ind Contractor Classification

Can i classify this as independent contractors:

In child care we are all governed by and must operate according to the State and Federal law (even if you are a facility with children cleaning you must still obtain clearances, etc.)

I have workers who come to me from verified backgrounds in childcare.

They produce their own lesson plans

They produce their own schedules

They agree to operate according to the laws

I only provide assistance such as training reminders and law changing updates similar to a professional forum/discussion.

When they are out of compliance, they are not out of compliance with me they are out of compliance with the state and federal laws so I am not directly telling them what to do per say.

The only things that I control are building operations such as posting no-smoking signs and proper exit signs for building regulations, etc.

For the most part, they come in and do their lesson plans and leave.

I only request to see the lesson plans for postings of it on the walls. I only ask about their schedules so I know when they are in the building.

How am I in any controlling what they do?
Also, I read some of your responses saying they have to have an ein, etc. However, I am aware that one can operate a business as a sole proprietor using their Social Security number. What else would they need?
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Old 02-13-2018, 08:45 AM
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Blackcat31 Blackcat31 is offline
 
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Posts: 19,760
Default

Quote:
Originally Posted by dontknow View Post
Can i classify this as independent contractors:

In child care we are all governed by and must operate according to the State and Federal law (even if you are a facility with children cleaning you must still obtain clearances, etc.)

I have workers who come to me from verified backgrounds in childcare.

They produce their own lesson plans

They produce their own schedules

They agree to operate according to the laws

I only provide assistance such as training reminders and law changing updates similar to a professional forum/discussion.

When they are out of compliance, they are not out of compliance with me they are out of compliance with the state and federal laws so I am not directly telling them what to do per say.

The only things that I control are building operations such as posting no-smoking signs and proper exit signs for building regulations, etc.

For the most part, they come in and do their lesson plans and leave.

I only request to see the lesson plans for postings of it on the walls. I only ask about their schedules so I know when they are in the building.

How am I in any controlling what they do?
Also, I read some of your responses saying they have to have an ein, etc. However, I am aware that one can operate a business as a sole proprietor using their Social Security number. What else would they need?
Lots of good info here:

http://tomcopelandblog.com/helpers-e...nt-contractors

His website is full of info about business, taxes etc...including sole proprietor and LLC info.
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  #3  
Old 02-13-2018, 10:09 AM
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TomCopeland TomCopeland is offline
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Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 3,066
Default independent contractor?

Quote:
Originally Posted by dontknow View Post
Can i classify this as independent contractors:

In child care we are all governed by and must operate according to the State and Federal law (even if you are a facility with children cleaning you must still obtain clearances, etc.)

I have workers who come to me from verified backgrounds in childcare.

They produce their own lesson plans

They produce their own schedules

They agree to operate according to the laws

I only provide assistance such as training reminders and law changing updates similar to a professional forum/discussion.

When they are out of compliance, they are not out of compliance with me they are out of compliance with the state and federal laws so I am not directly telling them what to do per say.

The only things that I control are building operations such as posting no-smoking signs and proper exit signs for building regulations, etc.

For the most part, they come in and do their lesson plans and leave.

I only request to see the lesson plans for postings of it on the walls. I only ask about their schedules so I know when they are in the building.

How am I in any controlling what they do?
Also, I read some of your responses saying they have to have an ein, etc. However, I am aware that one can operate a business as a sole proprietor using their Social Security number. What else would they need?
This is a tricky question that can have enormous consequences if you get it wrong. Here's the IRS explanation of this issue: https://www.irs.gov/businesses/small...ed-or-employee

Your state may see this differently than the IRS.

The main question is whether you have a right to direct and control their work.

You don't need an EIN, but I'd strongly recommend that you get one.

I can offer further clarification if you call me at 651-280-5991.
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