what employee benefits/tax obligations for maid and cooking services?

[cleanandcook]

What is the name of your state (only U.S. law)? Connecticut

I understand this will ultimately require sitting down with a lawyer to draw up contracts, but I was hoping to get general information before investing too much time and money into this venture. Thank you in advance for the help.

I'm looking to start a maid and personal chef business in Connecticut. There would be a set staff of employees that would handle cleaning houses and providing meal services for clients throughout the state and I would be take a percentage of the revenue for each job. Any of the employees would likely be part-time status, so my question is what if any legal obligations would I have to provide health and other employee benefits? What is the best way in general terms to structure contracts to minimize my financial risk, since I'd handle the marketing, web design and management of the day-to-day operations? They'd be at-will employees and initially at least I don't foresee the need for more than 5-10 individuals to cover the work. Again, thank you in advance for the advice.

 

[LdiJ]

What is the name of your state (only U.S. law)? Connecticut

I understand this will ultimately require sitting down with a lawyer to draw up contracts, but I was hoping to get general information before investing too much time and money into this venture. Thank you in advance for the help.

I'm looking to start a maid and personal chef business in Connecticut. There would be a set staff of employees that would handle cleaning houses and providing meal services for clients throughout the state and I would be take a percentage of the revenue for each job. Any of the employees would likely be part-time status, so my question is what if any legal obligations would I have to provide health and other employee benefits? What is the best way in general terms to structure contracts to minimize my financial risk, since I'd handle the marketing, web design and management of the day-to-day operations? They'd be at-will employees and initially at least I don't foresee the need for more than 5-10 individuals to cover the work. Again, thank you in advance for the advice.

If they are going to be your employees, then you would not take a percentage of the fees, you would be taking the entire fee and paying them a wage, with proper withholding and a W2 at the end of the year. That also means paying for worker's comp insurance and paying employer taxes. If you will be controlling the business, then its best to treat them as employees, and you may be legally required to treat them as employees.

If they are going to be independent contractors, and will be controlling the fees that come in, controlling their own schedules, and getting nothing from you except leads and advertising, then the would not be your employees, they would be independent contractors. You would not withhold taxes and you would be giving them a 1099 at the end of the year.

Its very important that you decide your business model up front, because how you set things up, the prices you charge, etc., will need to be determined based on how you are legally required to treat the people who work with or for you.