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Pat Pat is offline
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Default How to pay contractor, who to make check out to?

On Jun 20, 12:33 pm, RicodJour wrote:
On Jun 20, 12:19 pm, "longshot" wrote:

Careful. If he is trying to avoid sales taxes, some areas put the onus on
the customer to ensure that they are paying the taxes and theoretically


I'd love to see where this is written


Unfortunately that love will go unrequited. The onus is always on the
contractor to collect he tax.

In NY we have Certificates of Capital Improvements, which, when
properly filled out and signed by both parties, absolves the
contractor from having to collect tax. There are definite requirement
about what constitutes a capital improvement, and does not require the
payment of tax, and repairs, which do.

Note to the OP: Call your contractor and ask if you paid tax on that
$800 of work. If not, please remit the tax you owe immediately.

R


In NYS, you would also not owe sales tax if it is a service, not a
product. If you buy roses for your yard, you pay sales tax on it. If
you hire a landscaper to plant them, but not to provide any physical
things, then it is a service and there is no sales tax. If you pay
the landscaper to provide the flowers AND plant them, then you owe
sales tax on both the flowers and the labor.

However, in either case if the "sale" is over some number (I think
$600) and you are paying an individual, you need to issue a 1099.

Rico might know more about this than I do, but there might also be
differences in insurance coverage for workers comp., disability,
liability, etc. etc.