Is a tenant/porter an employee?

Hi,
I am on the board of a small 8 unit coop. One of the shareholders has agreed to remove garbage and clean the common areas in exchange for a $400 discount to his monthly maintenance fee. We have been told that this constitutes an employer/employee relationship the implication of which is added overhead (worker’s compensation insurance, disability insurance, taxes etc.) The shareholder/porter also ends up having to pay taxes on his discount. It seems to me that this approach is an overkill. I would appreciate any thoughts from members of the forum. Thanks.

By FGreene |