....I cannot figure out how the dojo would work, payment wise, for NG and her staff. Since that's a commercial enterprise tax wise (my best guess), that pay would be on a different set of books from the household with a different paperwork burden. I'm sure it doesn't matter, but it is curious to me.
I cannot recall what the income cutoff is for domestics to be required to be paid social security contributions. I wonder if pay at the SS home was cash, but pay at the dojo was 1099ed. The helpers could have been w-2's, I guess too.
SS seemed to be a by the books guy with money, so the commingling is interesting to me.
sbm bbm
Could Mr S have simply decided to use his
personal funds to pay NG's service - for
NG & VF's work at dojo during the few days pre-opening? Just handling it as if NG & VF were working at S' home, not dojo? Commingling? if so, impermissible commingling?
Soc Sec/FICA w/holding issues? IDK.
Workers' comp issues? Other issues? IDK.
In MrS's or anyone's mind - did the situation call for 'expeditious action' or a 'less buttoned up approach' to meet time pressure of putting finishing touches on dojo. IDK.
Not convinced of anything on this issue ATM. Just wondering.
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Another facet of same hypo-
If Mr S & Mrs S engaged NG's
cleaning service entity - whether sole prop, partnership, corp,
LLC, - for work in the S home, IIRC, S's payments to her service offers no fed inc benefit (no deductn, no credit) for his/fam 1040. Do I recall correctly?
IDK if it's improper commingling, seems, imo, the larger issue could be fed tax question for dojo, if not a 501c3).
If the situation were reversed and incorporated (not 501c3) dojo were paying Persons X and Y for their work at S home, - whether reported on 1099 or W-2 - yes, seems there would be issues, like
improper tax deductions for payments on 1099 or W-2, poss'ly resulting in
tax underpayment. If for a few days labor, I'm overthinking it. But like
AmazonianAbroad said - "
I'm sure it doesn't matter, but it is curious to me.".