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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4622
Experience:  35 years tax experience, including four years at a Big 4 firm.
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We are a non profit agency that provides services to the mentally

Customer Question

We are a non profit agency that provides services to the mentally ill. We run several residential programs and recently opened a new building where we hired a building superintendent. We want to provide him with a stipend of some sort because we are not providing him with an apartment right now. Will this stipend be subject to payroll taxes? If in the future we provide him with a rent-free apartment, is the value of the apartment part of his compensation and therefore subject to payroll taxes? Is there an standard agreement that we should have him sign regarding the stipend and later the apartment?
Submitted: 2 years ago.
Category: Tax
Expert:  PDtax replied 2 years ago.
Hi from just answer. I'mCustomer and can assist.
Expert:  PDtax replied 2 years ago.
The stipend for your building superintendent is taxable, and subject to payroll taxes.
Expert:  PDtax replied 2 years ago.
Housing would be taxable to him as well.
Expert:  PDtax replied 2 years ago.
Employees and independent contractors differ in their duties. Since your super works only for you, under your control, with your tools and supplies, he will be an employee. Any agreement with him will likely not overcome the common law tests that indicate he is your employee, so I don't see the need for an agreement to try and establish any other basis for his work.
Expert:  PDtax replied 2 years ago.
Thanks for asking at just answer. Positive feedback is appreciated. I'mCustomer