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Helper paid, no taxes taken out. Illinois

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  • Helper paid, no taxes taken out. Illinois

    I am the only employee in the Chicago area (office is in Georgia). Sometimes we have bigger jobs that require 2 people. My boss asked if I knew of anyone who could help. I found someone. They did not "hire" him but he just helps out whenever we need him. But when he gets paid they do not take any taxes out. They pay him a flat mount per day. Is this legal to not take taxes out?

  • #2
    A short answer is probably illegal. The employer will claim that the "helper" is a so-called independant contractor (IC). The helper will probably fail the statutory requirements for IC. If the employer really wants to keep things legal, the easiest way to to contract the helper through a temp agency. Then he/she is the temp agency's employee. Probably solved.

    http://www.dol.gov/whd/regs/compliance/whdfs16.pdf
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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