Landscape Maintenance

Only if the HOA requires it. I for one would not hire someone that isn't licensed and insured...It's just a choice for the HOA to make. If they are alright with it then continue on...However, it's best for everyone to be insured and licensed if you are considered a business and NOT a volunteer.

BTW, the association can choose to hire a licensed contractor if they wish. Most contractors charge five to ten times what you are being paid due to the overhead of operating a business.

I receive a misc 1099, so I guess that makes me an independent contractor.

So, yes, I would pay for the damage done to the car.

I work during the summer. Last year I made approx (don't have my tax files with me) $1,600.

As an Independent Contractor, do I have to be licensed for this type of work? Does using the blower put me into a different category re licensing?

I have my own medical insurance and the HOA carries Liability Insurance. If I was hurt on the job, I would use my own insurance and not file a claim against the HOA.

One of the HO's here is hasseling me about these issues (in retaliation for me denying approval on an Arch change). He says I am putting the HOA at risk for a potential lawsuit if I was injured and that I should be licensed. But, even if I did not have insurance to cover my own medial bills and put a claim in against the HOA, how would that be any different if he tripped and broke his leg on his way to the mail box?

I am very grateful for your insight and further advice. Candace

Thank you your speedy reply. It's always best to be safe than sorry so I think your advice is good to ponder. I just might have to turn in my rake and watering can, but will wait to see what others have to say. If anything else comes to mind on this topic, I am "all ears". Thank you again, Candace

Thank you. Looks like I have more homework, but you have certainly made it easier. I will post my findings. Candace

Keeping in mind that laws, etc. differ between States –

We (Condominium Association) require that anyone who does any work for us, provide us (prior to the start of work) with a “Certificate of Liability Insurance” which shows at a minimum the limits (amount) of “Commercial General Liability Insurance” that the Contractor carries.

We also stipulate that the “Certificate Holder” block is filled in with (contains) the “official” name and address of the Association.

The Insurance Agency (Producer) sends, Mails, the Certificate directly to us (Condo Association) by US Mail and/or by email PDF attachment, using the information provided in the named Certificate Holder “block”.

Also, FYI, whenever our property “is inspected” in conjunction with renewing our Condominium Master Insurance Policy, one of the questions we are always asked by the Insurance Inspector is, “do we have our contractors/sub contractors provide us with their “Insurance Certificates”.

Candace,

After reading your replies I would conclude that the association regards you as an independent contractor.

Do you need a contractor's license for the landscape work you do? Probably not as the work you are doing is more along the lines of janitorial work. If you were digging up yards to install sprinkler systems or doing something more construction-like then you might need a contractor's license.

Do you need a business license? Probably not as you have no business location and you are not offering goods or services to the general public.

I think that you are in a bad situation. The HOA is paying you employee-type wages without providing those things that an employer is required to. If they were your employer, they would be contributing to your SSA taxes, provide Workman's Compensation Insurance, and assume the liability for your mistakes. No experienced contractor, licensed or not, would take on the job you are doing at the price that your HOA is paying you.

The easiest solution is for the HOA to hire you as a part-time employee. It will cost them a few more bucks for the administrative costs, but it will allow them to continue paying you at your rate. To make your case to the HOA, get a few written estimates from licensed contractors for the work that you are doing now.

Candace

Were I you I would ignore all this "advice" and keep doing it as you have been doing.

Ah, if life were only that simple. Although the IRS has specific tests to determine whether a person is a contractor (self-employed) or employer, the IRS also states that making that determination is not always easy, and each situation may be different. A person may be a contractor in one case, but an employee in another. Sometimes it's only one little fact that can make the difference.

But, the IRS does make it easy. The IRS will make that determination for you if you wish. All you have to do is file Form SS-8, "Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding" and after about six months or more, the IRS will let you know whether it thinks you are an employee or a contractor. The form can be completed and sent in either by the firm hiring the person, or by the worker.

So what if a person has been incorrectly classified as a contractor instead of an employee? As long as the "contractor" (employee) has been properly paying income and self-employment taxes, probably nothing will happen to the employee. The firm that hired the employee and provided a 1099-MISC instead of a W-2 will probably be held liable for back Social Security, and Medicare taxes in addition to back worker's compensation and unemployment taxes, plus interest and penalties.

Although I work for an accounting firm preparing tax returns, I usually don't have to make such a determination. I just prepare the returns using whatever forms (W-2, 1099-MISC) the client gives me.

Candice,

Since you asked questions, I provided what I believe to be correct answers to your questions.

Since you're receiving a 1099-misc, the only IRS issues would be for the Association and not you. That is also only if the IRS audits you or the Association and makes the determination that you are an employee. Realistically, that's not likely to happen.

As for your initial question about insurance, you could cross that bridge when and if you come to it. If concerned, you could pose the question to your insurance carrier.

If I were you, I would do as Steve, Kelly and John suggest. The decision is yours to make but at least you have the information to make an informed decision.

By the way, the answer to the insurance question is easy. If you're not paying the premium to cover the risk associated with a particular activity, chances are that activity is not covered. The "perils insured against" portion of your policy states all the things that are covered, and the "Exclusions" portion of your policy are all the excuses the insurance company will use to get out of paying.