What are some of the Owner-Builders responsibilities?
The Contractors State License Board recommends that it’s best to hire a licensed contractor who is legally qualified to do the work. However, if you hire unlicensed people to perform the work, you may be considered an employer. This could make you responsible for: • Registering with the State and Federal Government as an employer. • Withholding State and Federal Income Taxes, Federal Social Security Taxes, paying Disability Insurance and making Employment Compensation contributions. • Providing workers compensation insurance unless the work is done by members of your immediate family. If you are an employer, you must register with the state and federal governments as an employer and be subject to the above responsibilities. There may be financial risks for you if you do not carry out these obligations and these risks are especially serious with respect to workers’ compensation insurance. For more specific information about your obligations under federal law, contact the Internal Revenu
