Vacation Rental Housekeeping Legalities
It is no surprise that after a group has rented one of your vacation homes, it is in need of a professional inspection, cleaning and sometimes maintenance.
So, who do you hire for the job?
Well in this economy, most people are looking to hire those who are efficient and work for less, and in an ideal world that would that would be the most cost efficient way. However, in doing so, you may be subjecting yourself to hiring individuals who are not legally permitted to work in California or more often the IRS says they should be your employee, not a contractor. This may cause a world wind of fines and legal fees coming your way and could later cost you more than you originally thought when hiring the individual.
Listed below are six reasons why it is a liability to hire an unlicensed or illegal worker as a “contractor”:
1 You will be liable to pay State and Federal taxes
2 You will be liable to purchase Workers Comp insurance
3 You might not be compensated if something goes missing
4 You might not be compensated if something gets damaged
5 You are liable if the housekeeper gets hurt
6 You are at risk: subjected to losing your professional license, legal fees, and more.
When in doubt, refer to the list below, as it will give you an accurate assessment:
IRS 20-Point Checklist–Independent Contractor or Employee
1. Does the service recipient have the right to require compliance with
2. Does the service recipient have the right to set the hours of work?
3. Does the service recipient have the right to set the order or sequence
of services to be performed?
4. Does the service recipient have the right to discharge the service provider?
5. Does the service provider have the right to hire, pay and supervise
assistants as the nature of the work requires?
6. Does the service provider have no ability to realize a profit or loss?
7. Does the service provider have no investment in significant tools, materials
and other equipment when such items are necessary to accomplish
the task and are customarily provided by the service provider?
8. Does the service provider have no significant investment in facilities when they are
necessary to accomplish the task and they are customarily provided.
9. Does the service recipient train the service provider?
10. Does the service recipient have the right to require oral or written reports?
11. Does the service recipient pay by the hour, week or month?
12. Does the service recipient pay for business and/or travel expenses?
13. Does the service recipient have the right to require personal service?
14. Does the service provider usually not work for more than one firm at a time?
15. Does the service provider maintain a continuing relationship with the
16. Does the service provider devote substantially full time to the service recipient?
17. Does the service provider have the right to terminate the relationship at any
time without incurring liability?
18. Is the service provider integrated into the service recipient’s business?
19. Does the service provider not make his or her services available to the
public on a regular and consistent basis?
20. Does the service provider work only on the service recipient’s property
or designated location?
- Yes answer suggests employee status; No answers suggest independent contractor status.
- More weight should be given to the first eight questions than the last twelve.
- If you answered “yes” to any of these 20 questions, proceed with caution. Consult an accountant or tax lawyer who is familiar with the problems raised by hiring individuals as independent contractors.
Solution:Hiring a cleaning agency is the best route, as it is the most cost effective and legal option. In doing so, you will avoid all the risks and liability! On top of the legality benefits (not having to purchase workers comp insurance, not under the scrutiny of the IRS, and you are not liable for any federal, state, or local withholding taxes!) hiring a cleaning service, with the agency being composed of a greater number of team members, these companies can offer more than just a cleaning service. For instance, San Diego Resort Rentals and Services, partners with Quality Care Services for such services as inspections after guest departures, professional cleaning, mid stay cleans, personal services, deep cleaning, turn over services, maintenance, and more! The variety of services and pricing packages makes for a welcoming service company to anyone!