sub contracting
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StarQuest
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desertstars
As an independent contractor you cannot dictate his hours nor his jobs or set any schedule of work. He must be almost completely beyond your control.
Anything more than that and you are risking employee status with all of the attendant responsibilities.
You will still be considered as someone to be sued for any job he assumes depending on whether he or you invoice that job referred by you.
The question of what or what does not qualify someone as an independent contractor is pretty well outlined in the present tax codes and I would suggest that you review that issue carefully.
Along with home business writeoffs, it is also a red flag when dealing with the IRS.
Anything more than that and you are risking employee status with all of the attendant responsibilities.
You will still be considered as someone to be sued for any job he assumes depending on whether he or you invoice that job referred by you.
The question of what or what does not qualify someone as an independent contractor is pretty well outlined in the present tax codes and I would suggest that you review that issue carefully.
Along with home business writeoffs, it is also a red flag when dealing with the IRS.
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GRT
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StarQuest
Well, after reading numerous articles on "Employee vs. Subcontractor" your right Desertstars. I'd be swimming in some murky waters with the IRS trying to subcontract repairs out. I know of another repair person that's been doing this for 5 years now. Up to this point....he's never been "Red Flagged" but I quess it's only a matter of time before he gets targeted on this one.
Any thoughts as to training a salesperson just to do demos and pay him straight comission? I'm definately not looking to hire an employee. Been there and done that for 20 years. After experiencing five bogus workers comp case claims against me, I decided it was time to make a change. I guess that's what makes Windshield Repair so great! Low overhead, little liability, good profits and simply not having to deal with employee concerns.
GRT, thanks for your humor and poking a little fun at me! I had to laugh cause you made your point!!!
Everybody enjoy your weekend and keep the post comming!
Keith
Any thoughts as to training a salesperson just to do demos and pay him straight comission? I'm definately not looking to hire an employee. Been there and done that for 20 years. After experiencing five bogus workers comp case claims against me, I decided it was time to make a change. I guess that's what makes Windshield Repair so great! Low overhead, little liability, good profits and simply not having to deal with employee concerns.
GRT, thanks for your humor and poking a little fun at me! I had to laugh cause you made your point!!!
Everybody enjoy your weekend and keep the post comming!
Keith
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starman
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desertstars
Don't hire anyone and train them without a non-compete agreement within a realistic period of time after either their voluntary or involuntary separation.
And, you can't train a subcontractor and hold them to that contract in the first place.
That insinuates control.
Restraint of trade aside.
The question as to whether non-compete agreements are enforceable are murky and it depends upon how much money you wish to invest in a mouthpiece if and when the time comes.
And, Starquest is correct.
If his friend ever gets audited, they will look at the matter of control and the end result could be costly in regard to a snakepit full of tax codes and employer responsibilities.
Think twice and think hard about the IRS differences between a sub and an employee.
And, you can't train a subcontractor and hold them to that contract in the first place.
That insinuates control.
Restraint of trade aside.
The question as to whether non-compete agreements are enforceable are murky and it depends upon how much money you wish to invest in a mouthpiece if and when the time comes.
And, Starquest is correct.
If his friend ever gets audited, they will look at the matter of control and the end result could be costly in regard to a snakepit full of tax codes and employer responsibilities.
Think twice and think hard about the IRS differences between a sub and an employee.
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glassdoctor
- Senior Member
- Posts: 733
- Joined: November 13th, 2003, 9:24 am
About the only way you can risk subcontracting to someone is if they will be doing fleet work, and/or you can keep it within the family, or someone you really trust. There is no guarantees a guy won't turn on you, but if you get the right guy, it's a risk worth taking IMO.
If you have an abundance of dealers and fleets, you should not have a problem meeting the requirements of a subcontractor. They need to have the own buisness established and probably have some bit of work that's all their own. Then you have every right to "hire" them to cover some of your accounts, and pay them for their services. I know some that have done this for years, and I have recently.
I think it's a good way to get a friend or relative into the business, and build your business at the same time. If done right, you can get a bigger piece of the pie and share your biz with a friend.
I did it because I want to establish more accounts. I also thought it would be nice to have a backup to cover if I need help or want to take a day off, or want to spend time doing "add-on" stuff like scratches, etc. And, even if I don't make a dime off my guy, I would rather share the market with an ally then the competition.
Retail customer wsr may be more difficult to get away with. It's not as neat and clean if you are ever questioned.
It probably won't work if you want to just get someone else to do your work or get rich off someone. That's when it will bite you in the ass... and you find that you should have gone the emloyee route.
If you have an abundance of dealers and fleets, you should not have a problem meeting the requirements of a subcontractor. They need to have the own buisness established and probably have some bit of work that's all their own. Then you have every right to "hire" them to cover some of your accounts, and pay them for their services. I know some that have done this for years, and I have recently.
I think it's a good way to get a friend or relative into the business, and build your business at the same time. If done right, you can get a bigger piece of the pie and share your biz with a friend.
I did it because I want to establish more accounts. I also thought it would be nice to have a backup to cover if I need help or want to take a day off, or want to spend time doing "add-on" stuff like scratches, etc. And, even if I don't make a dime off my guy, I would rather share the market with an ally then the competition.
Retail customer wsr may be more difficult to get away with. It's not as neat and clean if you are ever questioned.
It probably won't work if you want to just get someone else to do your work or get rich off someone. That's when it will bite you in the ass... and you find that you should have gone the emloyee route.
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