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is it ok to just get help from a friend and pay per job?


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Old 07-07-2008, 10:50 AM
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Cool is it ok to just get help from a friend and pay per job?

Hi guys,

What is your guys view on paying people. Do you pay close friends and relatives cash, or do you treat them as an employee? I have a friend that helps me from time to time. Also my Dad helps sometimes.

Mike
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Old 07-07-2008, 10:25 PM
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I've done this a few times, but never with anything where there is threat of injuries. My company has employees that I can borrow, but I occasionally pay on the side. I know none of my friends would ever sue me, but it's still risky since they won't be covered by your Workers' Compensation coverage in the event of an accident.
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Old 07-08-2008, 04:04 AM
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Hi Mike,

That is a great question. I would bet more small businesses than not, especially when they are startups, pay cash for such help. I think a lot of that can be explained because it's easy and they don't know the downside to it.

Can it get ugly? Yes, it can get very ugly. In fact, I know of a guy who was helping his brother work on his brother's property to remove a sidewalk. He got injured and sued his own brother! Talk about making it uncomfortable for family get togethers.

So do people do it? Yes. Is it dangerous for you? Yes.

What's your view on why you would pay cash versus handle it legitimately?
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Old 07-08-2008, 06:52 AM
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I went all legit knowing if I started out paying under the table, I'd never let that money go & become legit down the road. It's criminal. See thread "liability insurance audit" ..... Costs a ton!
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Old 07-08-2008, 08:24 AM
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That is very true and a good point. I am glad you said it like that.
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Old 07-15-2008, 12:44 AM
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Question How dose the paying of family member work there.

The WCB of BC is what the company pays into for employees right. But, dose the family(bros and sis or dad) get WCB too? I don't know haw it works in USA. Dose the employee have to pay for any benifits regarding acidents at work. (????)Also can you have them save for the taxes themselves?
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Old 07-15-2008, 12:57 AM
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Originally Posted by Lukacs Property Maintenance View Post
The WCB of BC is what the company pays into for employees right. But, dose the family(bros and sis or dad) get WCB too? I don't know haw it works in USA. Dose the employee have to pay for any benifits regarding acidents at work. (????)Also can you have them save for the taxes themselves?
It's a two in one deal with the WCB...or "Worksafe BC" as it's called now. They set all the workplace safety regulations as well as acting as the jobsite injury coverage people. As an employee, you pay nothing for it, your employer pays into it, but your employee will only be covered if you are paying into it for them, which means they need to have all the gov't paperwork filled out for taxes etc. to qualify for it. The only stuff the employee pays into in Canada is income tax, duh, as well as CPP (Canada Pension Plan) and EI (Employment Insurance) - which is for when you lose a job and you are looking for another one.

Tax wise, in Canada, you are supposed to deduct taxes from your employee's pay...but if it's done wrong or not at all, the tax return fixes all that kind of stuff, so they would end up paying it in April if it hasn't already been done (assuming they're recording their work for you)...you need the forms for that recording the amount you paid them, with any deductions (a T4 in Canada)...I only know Canadian income tax, so I'm probably no help to you.

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Old 07-15-2008, 01:06 AM
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Thanks Dave,

That helped quite a bit. Heard something about hireing family something that you dont pay wcb for family, not covered or something like that not sure?

mike
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