I'm looking to see what everybody else does when they cannot find enough reasonable experienced help

I recently have given an opportunity to someone who I know has criminal background. However there has been such a need for people who want to work without expecting 70 to 80 an hour, that this is a situation I find myself in.

The above might be a slight exaggeration but it is not much. I have given small jobs and small opportunities to the person and now I'm considering what I need to do to be able to write off the amount that he is paid. So the first concern I have is if he is getting cash at what point am I no longer able to prove that I paid him that money?

He does not have the bank account and he's not willing to open a bank account. The way that people are typically paid is through check or direct deposit. There is an app that can be downloaded on the phone that we get small amounts of money to when needed but we didn't want to do a huge amounts. I just want to make sure as far as the IRS is concerned that whatever is being paid to the person is actually tax deductible. Does anybody have any advice?

Hi Jen....

If you want to prove you paid him, that means a 1099-MISC income. You should be sending those to contractors whom you pay at lease $600 in a year. This isn't required for 'businesses' (i.e. Roto Rooter, Lowes, etc), but for Mr. One-Man shows....yes. You provide that document, that's your pathway to a legit deduction.

Require that he fill out the W-9 giving you his info before payment. Then it's on him if he doesn't claim it. You reported what you paid under his Social or EIN.

Sounds like this guy may be wanting to cheat on his taxes if he doesn't want a bank account and wants all cash. I don't buy the "I don't trust banks" argument. Consumer banks do not steal people's money. If that's his logic he's just trying to put you off with a lame excuse.

I would be concerned that someone who is okay cheating his fellow taxpayers would also cheat me. Supplies and tools that would "walk off" the job site and returned for store gift cards, which then get sold in the parking lot. Corners cut. Long lunch breaks. Etc.

I've moved away from these to more reputable contractors. Cost a bit more, but I benefit from peace of mine, punctuality, and quality work. And they don't disappear two weeks after doing the job. I pay around $40 - $65 / hour for competent work. If I can give a full day's work, I may get that down to around $30/hour. This is for a guy with his own tools, truck and can manage his time well.

David,

I'm sure that SID means: save big jobs for when the subs are not busy, sit idling and willing to take less.

I understand what you're saying. He does have a vehicle. Sadly materials walk-off with contractors that don't have a background.

I hate to say this but I'm really starting to think scraping the barrel is just what needs to be done. The people in the area do not want to work and when I get someone who does work they claim they can do everything and act like an infant sometimes.

You're giving this guy a chance. That's nice of you. If he really wants to turn his life around and start living on the straight and narrow, he will:

--provide you a copy of his photo ID

--provide you his SS#

I used to be timid about asking for those things. But think about it: if he doesn't want to provide them, WHAT DOES THAT TELL YOU?

When I was working as a handyman, even though I had my contracting license, some of my clients thought my hourly rate was too expensive. I had a fully stocked 1 ton van will all of the common parts needed to fix almost anything.

So when I charged a client for fixing their 100 gallon gas water heater for a 12 unit apartment building, they flipped out over the cost.

So the next time another 100 gallon water heater broke down, they called another professional -- a handyman. He took 2 hours to diagnose the problem and three hours to find the parts. Then another 1 hour to get it to work and 30 minutes to make sure the unit heated up and cut off once the proper temperature was reached.

The math, I charged for 2 hours labor at $50 per hour, coming to $100. The other guy only charged $35 an hour but took him 6.5 hours labor or $225.50. So in the long run, you can see getting someone who know his stuff, has the parts and tools to quickly get the job done right the first time -- is worth the extra cost because in the long run, it will be cheaper, with a warranty.

I have no problem asking for identification and getting a W9. I have had isolated instances in the past or I mistakenly paid a plumber and was not able to get those two items in time. You can bet the next time I called the plumber I waited to send payment until I got those.

I was able to talk with him further today. Today he was more open to receiving payment in the mail and not daily. Once you reach the $600 point I would demand a copy of his identification as well as a signed W9 before he got that amount. I would think that would make it easy to ensure I’m getting what is needed.

I agree with the math above of paying someone more. The math that I have seen has been closer to pay someone several times over what another is asking for and they still keep unused materials. Or pay someone Closer to $10-$15 an hour and same thing… They still keep unused materials.

Re: unused materials. Have them provide a complete bid for their labor and materials. Then compare those total bids. So you don't miss out on anything if they take the leftovers

{{{{{{{.......when you can't get enough of something that is in short supply, you pay more.......}}}}}}}

How much more do I need to pay?

I found a guy for $65 an hour that seems to do a good job. But I've been waiting a couple of months now for him to do a fairly simple job for me.

The guy who charged $50 an hour worked slowly, over-charged for parts, and the job he did for me had to be redone because he did it wrong. That one came with excellent references.

Licensed contractors won't even return phone calls, or they say they won't be taking any new customers until next year.