westernrvparkowner wrote:
Dog Folks wrote:
westernrvparkowner:
I understand that this is a very complex issue but:
I would ask to see some sources, as the 1099 issue has been discussed at least 50 times on other RV boards and the bottom line, as confirmed by the IRS, was determined as:
Private, For Profit Employer - You are an Employee
If you are working as an employee for a private, for-profit employer, there is a clear test to determine whether the value of the campsite they provide is taxable. If these conditions are met, it is NOT taxable and no tax form is necessary from the employer.
1) The campsite must be on-site at the employer's place of business.
2) Having you live on-site must be for the convenience of the employer.
3) Living on-site must be a condition to getting the position
Do your work campers fit the above conditions?
2 and 3 do not apply to most workamping positions. Yes, you could argue they were needed for overnight security, but proving it becomes problematic. Otherwise, there is no need for a workamper to live on site to work in the office, clean the restrooms, mow the grass, or do whatever else is done on a daily basis. As for requiring living on site as a matter of convenience, that is not at the employers discretion, it means the job cannot be completed by someone who does not live on the premises, such as Oilfield Gate guards who must be there whenever someone enters the premises, or something like a fireman at an oil refinery, where they would need to be at their duty station quickly and they tasks they would perform would be exclusive to their position and training. Hard to make that argument for a clogged toilet.
The bigger issue in my mind is even if you want to provide the RV site free of rent, you still need to provide wages if they are an employee. Paying minimum wage is not a discretionary decision. If people work for you, they must be paid for the hours worked, and those wages must meet the minimum wage requirement. Paying Wages come with the need to provide unemployment compensation, you must withhold taxes and you need to provide workman's compensation coverage. Those items come with significant costs. If others skirt those rules and requirements I am at a disadvantage. My costs exceed the costs those other parks incur. it may seem unfair, but an employer giving and an employee taking a site as the only compensation for hours worked, without reporting it as income is illegal.
It would seem that your issue is not the government but rather your competitors failure to comply with the regulations that cover all employment. While illegal and unfortunate as their actions may be it is the same as those that hire illegal immigrants for substandard pay.
It would also seem that the issue is a lack of enforcement on the governments part. However I don't see how they can enforce what they don't know about.
Regarding Social Security the only time the deduction for income is applicable is if the individual is under full retirement age and the income exceeds $15,720.00, for 2015. After full retirement age you can earn as much as you want without a reduction in your Social Security benefits.
Social Security BenefitsIf your workampers are complaining about a reduction in benefits they must be under their full retirement age limit and have another source of income, unless your reimbursement exceeds the limit they can make. If they are complaining about having to pay taxes, that's just a fact of life.
Many RV workamper employers set a minimum number of hours worked to be applied to the cost of site. Many workampers don't like this because they will get a 1099 for tax purposes. If the workampers income, including the site fee, exceeds the deductions they are entitled to then they pay taxes, again a fact of life.
Since I retired from paid workamper positions I only seek security positions as a volunteer.
I would suggest you get with an attorney to see if you can come up with some job descriptions that would include a certain amount of security work or on call provisions to satisfy the on site regulations requirements.