Employee Payments

Started by EricB13 • 7 replies • 61 views

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EricB13 (Illinois)
Posts: 29

Posted:

We have a maintenance worker on staff that picks up garbage around the property and fixes stuff as needed. He's great. We have a separate project going on where we need our new sod to be watered regularly throughout the summer.

We don't have any current mileage reimbursement for his normal duties, but he was asking for a flat $500 per month to do the watering. The $500 would just be a check cut out to him with no tax deductions or anything and not run through payroll. The watering would be done during his normal working hours so he would get those wages, but then the additional $500.

Is that the proper way of doing things or should he be treated as 1099 for the watering?

SheliaH (Indiana)
Posts: 6,964

Posted:

Who put down the sod - if it wasn't the maintenance worker, why don't you ask that contractor what's required of watering and go on from there? According to Google AI," new sod requires, at minimum, daily watering to keep it consistently moist for the first 2–3 weeks, usually 2–3 times a day (morning and early evening) for 15–20 minutes per session. The goal is to keep the soil beneath the sod wet, ensuring a total of roughly 1 inch of water daily."

I suspect this schedule could be altered depending on the weather (if it rains and you get enough of that, the maintenance man could do something else. It seems to me instead of a flat fee where he might not water the grass at all, it would be easier to add watering to his list of duties and negotiate a new rate. Run it through payroll as usual (assuming you're already doing that) and you won't have to worry about the 1099 because he should get that automatically at the end of the year.

When we talk of association money, it's important to do things properly. I don't know if this is an attempt to get out of paying more taxes on someone's part, but if you're not sure what to do, that's why that's why accountants, bookkeepers and tax advisors were invented - discuss this with whoever works for your association and go from there..

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

EricB13 (Illinois)
Posts: 29

Posted:

Quote:

Posted By SheliaH on 05/13/2026, 10:57 AM

Who put down the sod - if it wasn't the maintenance worker, why don't you ask that contractor what's required of watering and go on from there? According to Google AI," new sod requires, at minimum, daily watering to keep it consistently moist for the first 2–3 weeks, usually 2–3 times a day (morning and early evening) for 15–20 minutes per session. The goal is to keep the soil beneath the sod wet, ensuring a total of roughly 1 inch of water daily."

I suspect this schedule could be altered depending on the weather (if it rains and you get enough of that, the maintenance man could do something else. It seems to me instead of a flat fee where he might not water the grass at all, it would be easier to add watering to his list of duties and negotiate a new rate. Run it through payroll as usual (assuming you're already doing that) and you won't have to worry about the 1099 because he should get that automatically at the end of the year.

When we talk of association money, it's important to do things properly. I don't know if this is an attempt to get out of paying more taxes on someone's part, but if you're not sure what to do, that's why that's why accountants, bookkeepers and tax advisors were invented - discuss this with whoever works for your association and go from there..

It was installed by a landscaping company, but for them to come out with a watering truck it would be cheaper for us to have our maintenance worker come out with his spray tank to water. So that's the catch-22, this isn't in his normal scope of work and we are using his personal truck/equipment which he's entitled to get reimbursement for in IL.

I do understand the idea of adding a separate pay rate for his watering hours, and maybe that's a way we can do it and then he'll just have to submit a mileage/gas reimbursement.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By EricB13 on 05/12/2026, 2:04 PM

Is that the proper way of doing things or should he be treated as 1099 for the watering?

Issuing a check for the work done is the proper way.

That said, having a contract with the individual and designating him a contractor is better.
This can also prevent him from claiming he was an employee.

The Association should also issue a 1099-misc to the individual each January showing the amount paid the previous year.

References:

IRS site noting the difference between employee and independent contractor:

https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee

Info on 1099-misc:

https://www.irs.gov/forms-pubs/about-form-1099-misc

ElleN (Idaho)
Posts: 1,334

Posted:

Quote:

Posted By EricB13 on 05/12/2026, 12:04 PM

Is that the proper way of doing things or should he be treated as 1099 for the watering?

As long as the yearly total is at least $600, then the IRS says the HOA is supposed to issue a 1099.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By ElleN on 05/13/2026, 1:45 PM

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Quoted Post:
Posted By EricB13 on 05/12/2026

, 12:04 PM

Is that the proper way of doing things or should he be treated as 1099 for the watering?
--------------------------------------

As long as the yearly total is at least $600, then the IRS says the HOA is supposed to issue a 1099.

True, but the first post specifies that the individual is asking for $500 per month.

TimB4 (Tennessee)
Posts: 21,059

Posted:

I will also note that if the individual is considered an employee, the Association could have huge issues with the IRS for not paying taxes as an employer.

ElleN (Idaho)
Posts: 1,334

Posted:

Quote:

Posted By TimB4 on 05/14/2026, 1:57 PM

--------------------------------------
Quoted Post:
Posted By ElleN on 05/13/2026

, 1:45 PM

--------------------------------------
Quoted Post:
Posted By EricB13 on 05/12/2026

, 12:04 PM

Is that the proper way of doing things or should he be treated as 1099 for the watering?
--------------------------------------

As long as the yearly total is at least $600, then the IRS says the HOA is supposed to issue a 1099.
--------------------------------------

True, but the first post specifies that the individual is asking for $500 per month.

?

Hence a 1099 is required.

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