Janitorial duties and legalities

O.K. I know this looks boring but it is relevant (I hope!)
We are about to advertise for someone to clean our swimming pool restrooms on a daily basis,here are the questions
1.can we do this on a 1099?
2.Do they have to have a license?
3.Do they have to get workers comp exclusion?
4.Can we just have someone from the community do it,pay them on a monthly basis and then do the 1099 thing at the end of the year
5.What liabilities do we incurr?

Thanks

I used to do this myself. Sometimes it can simply be a volunteer from the HOA or BOD member. Consider part of the duties of being a BOD or HOA member. However, no one likes to work for "free" so paying someone is an option. Which I am sure someone here with more financial background can answer for you.

In our HOA, the pool bathrooms were attached to the clubhouse. Whoever rented the clubhouse was responsible for cleanup. We charged a $100 damage deposit along with a $20 rental fee. The renter got the deposit back if everything was cleaned up properly. We had a "clubhouse" committee who was assigned to take care of the clubhouse and collect the funds/coordinate events. So they basically kept up with the upkeep because they volunteered to be on the committee.

However, when the clubhouse wasn't being rented the bathrooms stayed open to pool guest and other contractors. We had a combination lock on the outside of the doors that only members/contractors knew. This helped keep vandals out and help keep the bathroom cleaner. I installed smoke detectors in each bathroom because we had some kids smoking illegal substances in them. Scared them when that thing went off and the whole neighborhood could hear it...LOL...So some vandal controls are a good idea to include in your bathroom situation.

Which ever you decide. NEVER pay someone by allowing them to skip their monthly dues or accept taking it out of their dues. This is a BAD idea and will really mess up your finances.

Stewart,

Here is a link to the IRS web page on determining an Independent Contractor (Self-Employed) or Employee.

I would also advice you to seek assistance from an attorney to help write the contract so it legally is for an independent contractor and minimizes any issues.

If you hire an independent contractor, you can specify in the contract that they carry specific insurance, etc.

If you hire an employee, the Association is responsible for all of that.

Hope this helps,

Tim

Consulting an attorney so proper language is inserted into the contract (if hiring an individual) to ensure there is no mistake the individual is an independent contractor and not an employee will pay for itself the first time the individual is injured on the job or a non-renewal contract causes them to apply for unemployment benefits.

It doesn't matter if the job is cleaning restrooms or performing bookkeeping services, if you want to hire an independent contractor vs. an employee the contract should be properly done so the Association and it's members are protected.

Tim

Petunka,

I know that the overuse of an attorney and kill you. I also strongly agree that you don't need to run to the attorney for every little thing. If you have people that have a good knowledge of how to read legalize (you certainly don't have to be a lawyer to do that) and you understand the rules (as Bruce gave the basics and I provided the link) then you probably don't have to go to the attorney.

I offered the advice of seeking an attorney for any specific language based on my Associations experience. My association thought they understood all the ins and outs of contract law. An issue developed over the contract with an independent contractor when we issued a 1099 and, although the issue was resolved on the side of the Association, the attorney (after looking at the contract in the process of resolving the issue)suggested some specific language and terminology that would have prevented the issue from occurring.

All any of us can do is offer advice and opinion based on our experiences, personal knowledge, the information provided by the posters, any research we might do into the issue and, hopefully, some common sense. Since everyone has varying levels of knowledge and varied experiences, the advice given will differ.

I understand your concern of running to the attorney over what could be a simple issue. However, I don't know the original posters level of experience in writing contracts. Therefore, based on my experiences, I thought the advice might be prudent. The OP is certainly free to act on it or not.

I've discovered that If the individual seeking the advice looks for commonalities within all advice given, performs some verification on those commonalities and then incorporate them into what ever they decide - the individual will most likely be on the right track.

As far as running a corporation, the Association is my only experience. As far as having to deal with, explain, comply with, draft and implement bureaucracy, rules and regulations - my background is mainly military and the work place.

As an example, it so happens my brother-in-law and his wife operate a small cleaning company. They have two vans and all the supplies, vacuums, mops, brooms, cleaning chemicals, etc.) and clean small offices (doctors, lawyers, insurance and real estate agents, etc.) They supervise the work and hire college-age, part-time employees to do the work during the evenings. They're bonded and insured and take care of the tax and insurance details that go with operating a small business of that type.

That type of company is sort of what is needed.

Have several people from the board do some checking online, visit some BNI groups (business networking organization) and do some checking on LinkedIn. There are companies that do that sort of work in KY, I'm sure that there are tons of them in Florida.

As Bruce says, that's really what you want. It would be a contract situation with a company that does the same job for other communities and individuals. It would be the easiest to deal with from a financial perspective, and you can get actually get bids they way you would for many other association duties.

Thank you everyone,being new to this game it is an absolute eye opener,personally I do not know how any HOA that is privately managed like ours does it on a voluntary basis,with members holding down full time jobs as well,I have spare time but I feel for those who do not,so far I am fighting home owners who in the past have not been fined for violations so its coming as quite a shock,fighting delinquent payers who will be having leins against their property,fighting a secretary who thinks her only job is to take minutes,fighting directors who cannot use computers,fighting past board members who are on the new board but have clearly been doing things they should not in the past,fighting the sub divisions perception of the board (a throw back to previous boards)and on top of that having instigated an audit,discovering new things on a daily basis,oh hum the joys!!!!