I live in Osceola County Florida. According to the county website,
when a homeowner is acting as a general contractor, "Any person
working on your building who is not licensed must work under your
direct supervision and must be employed by you, which means that you
must deduct F.I.C.A. and withholding tax". What exactly does this
mean? How much F.I.C.A. and withholding tax do you deduct? I went to
the IRS website and can't find any forms or guidelines on how to file
this tax.

jloc803 wrote:
I live in Osceola County Florida. According to the county website,
when a homeowner is acting as a general contractor, "Any person
working on your building who is not licensed must work under your
direct supervision and must be employed by you, which means that you
must deduct F.I.C.A. and withholding tax". What exactly does this
mean? How much F.I.C.A. and withholding tax do you deduct? I went to
the IRS website and can't find any forms or guidelines on how to file
this tax.


How much did you make last year................................


Send it to us.


Thank you, IRS

jloc803 wrote:
I live in Osceola County Florida. According to the county website,
when a homeowner is acting as a general contractor, "Any person
working on your building who is not licensed must work under your
direct supervision and must be employed by you, which means that you
must deduct F.I.C.A. and withholding tax". What exactly does this
mean? How much F.I.C.A. and withholding tax do you deduct? I went to
the IRS website and can't find any forms or guidelines on how to file
this tax.

http://www.irs.gov/businesses/small/...=98942,00.html

Need to also find out if have to withhold for State and/or Municipality,
too. IRS won't know that, but FL equivalent will...

Maybe it ain't gonna' be so easy to cut the contractor outta' the loop
as you might've thunk???

--

You didn't look very hard. It's all there...under small business.
AND you have to have workers supply you social security #'s; have them fill
out withholding forms, etc etc.
"jloc803" wrote in message
oups.com...
I live in Osceola County Florida. According to the county website,
when a homeowner is acting as a general contractor, "Any person
working on your building who is not licensed must work under your
direct supervision and must be employed by you, which means that you
must deduct F.I.C.A. and withholding tax". What exactly does this
mean? How much F.I.C.A. and withholding tax do you deduct? I went to
the IRS website and can't find any forms or guidelines on how to file
this tax.

jloc803 wrote:
I live in Osceola County Florida. According to the county website,
when a homeowner is acting as a general contractor, "Any person
working on your building who is not licensed must work under your
direct supervision and must be employed by you, which means that you
must deduct F.I.C.A. and withholding tax". What exactly does this
mean? How much F.I.C.A. and withholding tax do you deduct? I went to
the IRS website and can't find any forms or guidelines on how to file
this tax.

The county is full of it. Check the IRS definitions of "contract labor."

Does your county government give out advice on patent or admiralty law? How
about the tariff on rail transportation of Yak Fat?

"jloc803" wrote in message
oups.com...
I live in Osceola County Florida. According to the county website,
when a homeowner is acting as a general contractor, "Any person
working on your building who is not licensed must work under your
direct supervision and must be employed by you, which means that you
must deduct F.I.C.A. and withholding tax". What exactly does this
mean? How much F.I.C.A. and withholding tax do you deduct? I went to
the IRS website and can't find any forms or guidelines on how to file
this tax.


It means you will be an employer, just like the company you work for if that
is how you earn a living. And you need all of the accounting that goes with
it.

I'm not a lawyer, but I have to wonder just how enforceable that is. Making
them an employee opens you up to all sorts of headaches. You can find the
payroll deduction percentages, but keep in mind, as an employer you have to
contribute half the FICA also. Total is about 15%. You also have to remit
the tax withheld to the IRS and possible state taxes. Then you have to send
out W-2 forms at the end of the year. Check your Workman's Comp laws too if
you have more than one employee. You also have to comply with overtime and
minimum wage laws, possibly post some information about the laws in a
conspicuous place, and the list just goes on and on. Oh, be sure to read up
on the maternity leave provisions.

In article .com,
jloc803 wrote:

I live in Osceola County Florida. According to the county website,
when a homeowner is acting as a general contractor, "Any person
working on your building who is not licensed must work under your
direct supervision and must be employed by you, which means that you
must deduct F.I.C.A. and withholding tax". What exactly does this
mean? How much F.I.C.A. and withholding tax do you deduct? I went to
the IRS website and can't find any forms or guidelines on how to file
this tax.

If you pay the worker less than $500 in a calendar year, you don't have
to worry about any of that ****. Alternatively, there are staffing
agencies (that may not be the correct term) for small companies that
don't want to deal with payroll. So instead of paying the guy $10/hr.,
you pay the agency $15/hr. They pay the guy, the government, and
themselves. They cover all the taxes and insurance, etc.

In article ,
"Edwin Pawlowski" wrote:


I'm not a lawyer, but I have to wonder just how enforceable that is.

Me, too. Working as a freelance writer for all these years, I don't
see how having someone coming in and working for me on a project basis
would make them an employee for tax purposes. Still should be an
independent contractor, I would think.

"jloc803" wrote in message
oups.com...
I live in Osceola County Florida. According to the county website,
when a homeowner is acting as a general contractor, "Any person
working on your building who is not licensed must work under your
direct supervision and must be employed by you, which means that you
must deduct F.I.C.A. and withholding tax". What exactly does this
mean? How much F.I.C.A. and withholding tax do you deduct? I went to
the IRS website and can't find any forms or guidelines on how to file
this tax.


You also forgot that you must have an industrial insurance policy in place
to cover anyone who does not have their own. When I built houses, I paid
the subs, and had them sign a W2, and at the end of the year sent them a
1099. Most reduced their prices for cash on the spot. I still paid them
about 10% on check so that they would be covered on my industrial insurance.

Building your own house is not hard. But it's more complicated than a lot
of people think.

Steve

In article ,
wrote:


They are certainly independent sub contractors but Florida law makes
the general contractor responsible for tax and insurance compliance.
Maybe for FL taxes and insurance purposes, but certainly FL would
have no sway over what the Feds require to make a person an employee and
thus responsible for FICA and Fed w/holding.

Kurt Ullman wrote:
In article ,
wrote:


They are certainly independent sub contractors but Florida law makes
the general contractor responsible for tax and insurance compliance.
Maybe for FL taxes and insurance purposes, but certainly FL would
have no sway over what the Feds require to make a person an employee and
thus responsible for FICA and Fed w/holding.

No, but they can (and apparently do) require you to adhere to a set of
rules before issuing a building permit which include assuming liability
for subcontractors...

www.kissimmee.org/uploadedFiles/Work/Departments_and_Services/Development_Services/ownerbuilder.pdf

CITY OF KISSIMMEE
DISCLOSURE STATEMENT
FOR OWNER / CONTRACTOR

State law requires construction to be done by licensed contractors. You
have applied for a permit under an exemption to that law. The exemption
allows you, as the owner of your property to act as your own contractor
even thought you do not have a license.
You must supervise the construction yourself. ...
You may not hire an unlicensed person as your contractor. It is your
responsibility to make sure that people employed by you have licenses
required by state law and by county or municipal licensing ordinances.
Any person working on your building who is not licensed must work
under your supervision and must be employed by you, which means that you
must deduct F.I.C.A. and withholding tax and provide workers
compensation for that employee, all as prescribed by law. ...
....
STATE OF FLORIDA
COUNTY OF OSCEOLA

--

In article , dpb wrote:

Kurt Ullman wrote:
In article ,
wrote:


They are certainly independent sub contractors but Florida law makes
the general contractor responsible for tax and insurance compliance.
Maybe for FL taxes and insurance purposes, but certainly FL would
have no sway over what the Feds require to make a person an employee and
thus responsible for FICA and Fed w/holding.

No, but they can (and apparently do) require you to adhere to a set of
rules before issuing a building permit which include assuming liability
for subcontractors...

Good point. I got focussed on the Fed part and forgot that the real
requirements were for the permit and the governmental unit can pretty
much require what they want to for the permit.