Purchasing my first MHP and trying to figure out how to handle my resident manager compensation and tax implications…
How are you compensating your resident managers? Additionally, are you treating them as payroll employees? 1099 contractors? Do you also have workers comp insurance as well?
Payroll and workers comp yes.
What payroll service are you using if you don’t mind me asking?
We use Gusto for payroll.
Do you enter a taxable fringe benefit for free lot rent or just let it be?
Let me put it this way, I think it is a taxable fringe benefit unless it meets certain criteria specified by the IRS.
For workers compensation wage calculations, you treat “free rent” just like regular payroll/compensation. Example. Manager Jones has a salary of $3,000/month, plus free rent on their provided home valued at $1,000/month. That means wages for workers compensation insurance purposes would be $4,000/month for Manager Jones.
Is this the same for earnings reported to the IRS? I know on Gusto it shows quite a hit to my manager’s pay if I enter lot rent as a fringe benefit.
I’m not for sure - better answered by a CPA 