Cohousing-L Mailing List: Re: paying ourselves for work

[John Eaton (johne]

>  
> We're printing our own money in Ithaca, NY.  $47,000 of Ithaca HOURS (at
> $10/HOUR) has been issued since 1991.  Over 1,000 people have used it to make
> thousands of trades.  Thousands of goods and over 300 services are available:
>  
Anyone thinking out setting up such a system should have good understanding
of the IRS rules on barter systems. One of the reasons that such payment 
programs are so effective is that they leave out the 30-50% that normally
gets skimmed off for taxes. The IRS knows this and actively seeks out such
deals and demands that the particpants cough up the taxes due. Make sure
you know the rules before you break them.


If you are "paying people for work" you may also be subject to various
workers comp laws. Figure out beforehand what you will due if someone
working for the group becomes injured.


John Eaton
!hp-vcd!johne