In our area (NC), there are lots of farms. I would be willing to bet most people pay cash under the table. What is the right way to hire one person to clean stalls?
I am already searching the forums (I have a new user name, but have been around the block here for a few years…) - but not finding exactly what I am looking for.
Thanks in advance!
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It depends on where at in NC and how close you are to a major area. Going rate for a dependable person in the RTP area is 15.00 an hour for a minimum of 2-3 hours. Some people pay cash, most do not if they are being run as a true business and have proper insurance.
Your legal options are to hire someone as an employee or as an independent contractor.
If you hire someone as an employee, you need to fill out a bunch of employment forms and when you pay that person you need to withhold taxes for them. Insurance requirements for agricultural employees vary by state so you may or may not need to pay for workman’s comp insurance. You would likely want some kind of insurance to cover you as an employer, though.
If you hire someone as an independent contractor, you keep track of what you pay them, and then at the end of the year, you provide them with a 1099 form. Independent contractors are expected to pay their own taxes, so you don’t have to withhold any money.
To many people, pay as an independent contractor seems like the easiest way to go. But, you can get it a lot of trouble over this if there is an issue and your worker is determined to actually be an employee and not an independent contractor. There can be some serious financial penalties involved. An accountant can help you determine if you can legally pay someone as an IC.
One important factor to consider is that no matter how you hire someone, you are exposed to liability risk. It’s easy for a barn worker to get seriously injured–kicked, bitten, stepped on, etc. Heck, even just a “minor” injury can easily rack up $10,000 or more in medical bills once someone goes to the hospital or needs “minor” surgery. So whatever method you choose for hiring someone, talk with your insurance agent about the “what-ifs” and make sure you are adequately covered.
Keep in mind that an independent contractor sets their own hours and provides their own tools. If you pay/hire someone as an independent contractor but tell them what time they will be working, and you’re providing the muck bucket and fork and shovel, that will be considered an employee and when they turn you in for it, you will be required to pay back taxes, SS, etc. I’m speaking from experience on this, as I went from employee to independent but the barn owner still thought he was in control of me like I used to be as an employee. 
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