|Re: paying ourselves for work (FWD)||<– Date –> <– Thread –>|
|From: Fred H Olson WB0YQM (fholsonmaroon.tc.umn.edu)|
|Date: Mon, 14 Nov 94 17:31 CST|
Wm Leler @NETCOM.COM:WM [at] ITHACA.COM is the author of this message but due to a listserv problem it was posted by the COHOUSING-L sysop. > > We're printing our own money in Ithaca, NY. > 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. I think this whole issue is a red herring. If you get paid to do some work it doesn't matter if you are paid in Ithaca Hours, gold, sex, or even good old US greenbacks -- you still owe income tax on the income. If you pay someone else, you are still subject to laws that affect employers (and subject to being hassled by the media if that person happens to be an illegal immigrant and you decide to run for public office later :-) If you think the purpose of barter systems is to avoid taxes, you are mistaken. Wm Leler
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