Divers and helpers on dredges

[Geowizard]

With reference to Divers and Helpers,

Mining and any other production related work should involve a means of providing a production incentive.

When miners become part of a production team that shares in the operation, they become more efficient and work more diligently toward all possible ways of improving the production process.

An hourly wage plus a production "bonus" keeps all hands working toward the same objective - more GOLD!

- Geowizard

[Jim_Alaska]

Very true Chuck, miners would be well served to keep this in mind, whether they be helprs or owners.

[Geowizard]

I want paid under the table...

Many "Helpers" want to be paid under the table.

When does a helper become an employee? Is payment in GOLD considered the same as payment in cash?

What are the liabilities involved in paying helpers? Many miners and helpers try to wiggle around the rules.

Questions may end up before a judge when an accident or fatality happens.

When you pay someone to perform a service for you or your company on a regular basis then they become an employee. Employees are "covered under State and Federal law". The State of Alaska requires that mining companies meet certain requirements including filing taxes and covering employees under the workman's compensation insurance laws. When a worker gets injured, and cannot work, an employer covers 50 percent of the pay-out. Same thing for unemployment insurance.

Payment under the table requires the "employer" to file a 1099 with the IRS. That makes the employee responsible for payment of Federal income taxes. An employer needs to have an EIN. You get that from www.irs.gov.

Having a helper is complicated. More than the just the financial side is responsibility for their health and welfare on your dredge/mining operation. You may become liable for long term disability payments for accident/injury on your operation.

Fun stuff!

- Geowizard

[Geowizard]

Miners Bill of Rights;

A helper on a dredge or other mining operation works under MSHA rules and regulations. The rules are in place to protect people that work in mining operations. The rules include a "Miners Bill of Rights". It used to apply to mining operations with more than three people. Now it covers ALL mining operations.

A mining company including anyone with helpers is subject to "compliance" and that includes compliance inspections. Be ready for all of that by taking the time to read the rules.

- Geowizard

[Geowizard]

CYA;

Anyone considering entry into a mining enterprise needs to Cover their A$$.

The first thing is to organize an LLC. You can do that online at the Alaska Department of Commerce. Make up a name that you want to call your LLC. Pay online and you're there. Helpers work for the LLC.

Sit down with an attorney. Draw up an agreement that helpers sign that defines the limits or your liability and the requirements that you have for them to work on your dredge and/or mining operation. The world is full of helpers that want to help you with your mining operation. The owner/operator becomes immediately liable for any accident or injury when that helper steps on board. They know that and they could end up OWNING your operation over a slip and fall accident.

- Geowizard

[Jim_Alaska]

Wise advice Chuck. As the regulations are today it becomes imperative that operators stick to the rules or pay the price. Paying under the table is first of all illegal and can have serious consequences for the operator as well as the helper. But paying as an employee can be very expensive and subject to hard regulations.

Paying helpers as contractors can also have it's draw backs. The operator has to protect himself and his business and not issuing a 1099 will land him in trouble very quickly. On the helper's part he must be aware that once a 1099 is issued there is no recourse, the operator is required to turn in his notice of 1099 issued. The helper must file his returns with the IRS and if applicable, pay his taxes. The IRS is very familiar with contractor vs. employee scenarios and they do check. You, both operator and helper would be making a big mistake to think they will just overlook it.

[Geowizard]

Mining License;

An APMA is a permit to mine in the State of Alaska.

You cannot mine in the State of Alaska without an APMA and a License to mine.

Having a Mining License places a miner on the State Tax (think Department of Revenue) roll in the State of Alaska. Not being on the Tax roll and paying the appropriate royalty fees to the State of Alaska can subject the mining claims to the risk of closure by the State.

Be prepared to receive a "water bill" (for using water) from the Alaska Department of Environmental Conservation (DEC).

- Geowizard

[Geowizard]

Note to employers;

Payment of wages is deducted from your net revenue because the wage earner pays income taxes on the wages.

If you do not declare the wages paid, YOU end up paying the income taxes for the wage earner in the form of additional taxes on your net profit. A 1099 puts the tax burden on the wage earner.

- Geowizard

[Jim_Alaska]

I am not up to speed on Alaska issues, but have to ask if miners are not speaking up in opposition to these regultions at comment meetings?

Do these regs only apply to state land, or do they include Federal also?

Mining License;

An APMA is a permit to mine in the State of Alaska.

You cannot mine in the State of Alaska without an APMA and a License to mine.

Having a Mining License places a miner on the State Tax (think Department of Revenue) roll in the State of Alaska. Not being on the Tax roll and paying the appropriate royalty fees to the State of Alaska can subject the mining claims to the risk of closure by the State.

Be prepared to receive a "water bill" (for using water) from the Alaska Department of Environmental Conservation (DEC).

- Geowizard

[Jim_Alaska]

Chuck, I have been reading up on the APMA permits and requirements online at the Alaska website called Alaska Department of Natural Resources. This issue seems to be aimed at larger operations. There are amounts of material to be moved, as well as surface amounts disturbed and reclamation. This does not look like anything that applies to what we, as small scale miners do. These are for the big boys, and yes, it is complicated and expensive.

I would have to study up on this, but seriously doubt that the state can impose royalties if the operation is on Federally managed land. Federal mining claims and mining is governed and protected by the Dept. of Interior and is protected under the Mining Law of 1866, as amended in 1872. Under the mining law, resources that are classified as Leasable/Salable fall under the royalty rules of the Dept. of Interior. These would be resources such as oil and gas.

In regard to Federally managed land, The Feds have supremacy under The Supremacy Clause. And regardless of what any state claims the Feds control what can and cannot be done or allowed on Federal Public Domain.

Ask me how I know all this.