How to pay

[auntdeenee]

Hi all! Need advice.. I am working at a retirement home and I rent the space. They charge me a percentage of what I make for rent there.. I’m the only hairdresser there which I absolutely love!! but I am getting overwhelmed with business, forcing people to wait 2 weeks to get in! I need somebody to help me for ONE of the days during the week but don’t know how to pay this person!! That’s above board and legal but making it worth their time also!! I know it should be the offices problem but they have NO IDEA!! Any advice???

 

[salonfrog]

You have 4 options:

I. The new person becomes self employed with a contract directly with the hone too then it’s up to them to sort out tax etc

II. . The new person becomes self employed with a contract directly with you and then it’s still up to them to sort out tax etc. In this case they are a contractor to you.

III. They become your employee. If they earn more than £118 pw though you’ll need to put them through PAYE. More info here:
https://www.gov.uk/paye-for-employers
IV. They become the home’s employee

 

[AcidPerm]

(The OP is based in Nebraska, USA so U.K. PAYE rules don’t apply.)

However, you could explore the first two options suggested by @salonfrog

If the retirement home continues the percentage split arrangement with a second person, you wouldn’t need to be involved but, you’d risk the new person choosing to work more hours and it could impact on your business.