How do you legally hire someone?

Um…ask them first?

Ask them, work out payment, pay. Keep notes, file your taxes accordingly.

Would you have insurance coverage on them via your homeowner’s policy?

I don’t think you’re legally required to do anything. Possibly write a simple work agreement with them to sign. Make copies for yourself and one for each of them outlining the job and what’s expected of them and what you’ll be paying them and when.

But if you’re asking about the tax side of situation. They’re responsible for claiming any income you pay them on their taxes. You’re basically hiring them as freelance workers, and all those responsibilities lie with them. Though a lot of this kind of work is under the table unless you do it professionally or make a substantial amount from it.

Employment falls under contract law. “Consideration is the concept of legal value in connection with contracts. It is anything of value promised to another when making a contract. It can take the form of money, physical objects, services, promised actions, abstinence from a future action, and much more.” “Consideration” when speaking of the employment contract is the services an employee renders an employer, and the monetary ( or barter ) compensation an employer renders an employee. Render this consideration and the person becomes your employee and you their employer.

Employers sometimes get in trouble for not having checked someone’s immigration status, not having paid social security taxes (how does one even do that?) or not paying prevailing wages, etc… Those are some of my concerns.

What state are you in and how legal do you want to be?

If you are hiring them to renovate your house you might want to make sure that you are insured against an injury incurred on your premises. I take it these are free-lancers who are not full-time contractors who would carry their own worker’s compensation insurance.

Pennsylvania, and hoping to be legal enough not to be arrested, sued, or kept from running for the Senate in the future. ;D

Look on your state’s department of labor website. Every state labor department website I’ve looked at has had exactly what I needed.

I’m not exactly sure, but I don’t think you really need to do anything besides ask them. It’s a good idea to do a quick background check on their criminal history, if they have one, just so you feel safe working with them.

The very least you should have contracts drawn up and have them read it and sign it before even setting foot inside the house. The contracts should have details on what’s expected of the students during the time they’ll be working for you and how much they’ll get paid, they agree not to sue you should they injure themselves while working under your supervision.

It’s best to have written and signed contracts for any business venture so there’s no disagreement or misunderstanding in the future between the parties. Everything is clearly outlined.

@JaneraSolomon This one’s pretty gray. But I’d tend to treat them as employees. In which case you’ll need an Employer Id number, an unemployment account, workers comp insurance, probably a state disability insurance policy, W-4s from them, and an I-9 for the immigration thing. You could try to treat them as contractors, but I’m guessing that wouldn’t fly under scrutiny. The IRS has a 14 part test for who’s an employee and who’s a contractor. Let me know if you want more info.