Paid Work Agreements: Introduction
Paid work agreements are an arrangement where a resident is provided wages, money, discounts on rent, or any other items of value in exchange for performing work for the organization.
Examples include but are not limited to the following…
- A recovery housing organization hires a resident to be a peer supporter for their larger program
- A recovery home hires a resident to be a part-time house manager
- A recovery home has a senior resident perform specific tasks, and in exchange for half off of their rent
- A recovery home hire a resident to do lawn maintenance
All employees should appropriately be classified, and all appropriate taxes should be paid.
Rent may be considered a taxable benefit, so an organization should examine arrangements where rent is offered to ensure that both the organization and the resident are aware of their tax liabilities and implications.
Consequently, it is a good idea that a recovery housing organization seek legal advice to ensure that they are entering appropriate employment relationships with anyone who is performing work for the organization.