Hired Help wages

[Paradise]

We pay $15/hr., which is why we only have help when we are NOT there Wish I could afford help!!

 

[Alibi Ike]

Were they paying them cash under the table vs going through the proper hiring practice and paying taxes? In other words, undocumented workers?
I don't really think it is anyone's business what anyone else does. I would be careful where you step on this one. Let me ask the group here as a whole, are your housekeepers/chambermaids declaring their tips? If not, that is also illegal. So just be careful. I don't think an innsitter should be investigating the rest of the business, just my 2 cents on that, it could end badly..

As far as tips go...we tell the housekeeper of record that tips are their business and they are required to account for them when they file their taxes. As long as we don't handle the tip money, we don't know about it. Should we ever do tip sharing, we would then be handling the money and we would be required to remit the tax money. So, we stay out of it.

 

[Alibi Ike]

The IRS is also interested in whether someone who works for you is considered an independent contractor rather than an employee, and they have a lot of guidance in their Employer's Tax Guide (publication 15).
In Maine, if you want to treat someone as an independent contractor who is not obviously set up in their own business (e.g. you are going to write your check to them personally), you need to submit a "request for pre-qualification of independent contractor status" to the Worker's Compensation Board before you hire the person..

Harborfields- just had guests here looking for a summer cottage for next year. I will pass your info along to them!