Lawn Mowing and Workmans Comp

mobile home university
1

I have a tenant that is my eyes and ears in my park. He has expressed interest in mowing and other lawn maintenance type jobs. There is a lot to maintain. He would be using my equipment. So to you park owners that provide lawn maintenance and pay a tenant to do that do you also have a workmans comp policy in place in case of an accident?

Thanks

2

Dan,
When we bought our park had a lady who did all our very light maintenance in the park and for that she was given free lot rent. My wife felt that was wrong and requested they complete a 1099 form for the IRS which alerts the IRS that we paid an independent contractor over $600 per year for services. My wife has her own bookkeeping/payroll company. The IRS matches that up against their tax returns to ensure accuracy. In this case we were ‘in a sense’ paying her $225 x 12 per year or or $2575 per year.

They balked at it and said they didn’t want to provide so we turned to someone else to do it. Sad thing about it is that they did not want to report the free pad rental as income; but now they pay us after tax dollars for the rent. Seemed like six of one; half dozen of another to me… oh well.

It should go without saying… I am not a tax person and can’t commit 100% this is accurate. It is just what we do. My wife will not allow me to pay anyone more than $600 per year without them completing that form. It is very simple…and pretty much made for situations like this.

3

I carry workman’s comp for the managers as well as casual labor I use once in a while. Given what could happen to me if someone gets hurt, it is probably the cheapest form of insurance I can buy.

I think the bigger issue with the 1099 is that the IRS could construe a resident doing the work as an employee and not as an independent contractor. Your tools and your instructions. Not saying I like this policy, but it is something that has been bothering me for some time.

4

Thanks for the response.

5

Thanks for the information.