I normally work for 50% and pay my guy from that.
This time the owner calls me and says he wants to be at the job because the homeowner requested he be there. So now the owner of the window company wants me to get 25% and we share the hourly wage for my worker.
is this fare?
Why not?
who is covering the payroll taxes on your helper?
So the owner is paying you as an employee and you bring your own assistant?
I know your reasons for that are to save money and avoid the tax paperwork/overhead with thinking the 1099 is the way to go. But your ‘assistant’ probably cannot be classified as contractor.
Independent Contractor (Self-Employed) or Employee?
Your employer is screwing you, Your screwing the gov, and everyone is pretending to be naive about it.
Yeah, I don’t think that fair…to anyone.
Then he’s self employed.
[COLOR=#333333]…double post…[/COLOR]
That’s the same thing dude.
Back to my original question?
The owner of the company doesn’t have my worker on his books at all
I think the reason your not getting the answer you want is that many of us pay work comp and all the other taxes and insurances that are required for businesses.
Why does that matter? Because when we hear 1099 that is another way of saying uninsured and in some cases ‘bucket bob’. I literally just finished an audit so my goal in business is to educate customers and eliminate these so called ‘businesses’ that happen to share the profession that I enjoy and have spent 17 years to build.
So to answer your original question, no I don’t think that’s fair but then again your not paying the taxes required so you are probably going to do ok. I suggest getting away from being a sub and build a company that does not require you leaning on someone else.
I wish you the best!
I don’t get it I payed taxes on $55k in subcontracting work last year
I payed $800 to insure my biz for the year?
How do I not pay taxes If I’m on 1099?
Liability insurance is not work comp. Guy, don’t take this personal but the way the original question phrased likely raised some red flags.
We may very well be totally wrong about you and you seem like a good guy but keep in mind when you phrase a question or statement you have to understand we know nothing about you. I have definitely miss worded my comments and it caused me not to get the info I wanted. It’s just a heads up
Trust me I’m sick and tired of doing sub work. I would love to get my guy on payroll,workmans comp all that but I just don’t have enough of my own work.
which is part of the reason I joined wcra and want to start mailing the hell out of some postcards.
Not even death saves you from paying your tax liability.
But you can limit or zero it out with with an offshore accounts, corporate subsidiarity outside of the country, creative accounting, invest income into a sheltered 401 and or IRA.
Of those, Id probably go with a mob accountant. They can keep you safe for 10-20 years.
[MENTION=3250]HOTWINWASH[/MENTION] “Of those, Id probably go with a mob accountant. They can keep you safe for 10-20 years”… Are you hanging with “TintDr” and We can only keep you hidden for 7-10…
It’s best to follow the laws. If you can’t afford to legitimately have an employee, then you shouldn’t have one at all.
We both pay taxes and are insured how are we breaking laws.
I guess I won’t be posting any questions because apperantly subcontracting is against the law??
you aren’t doing anything wrong as long as you guys are following the subcontractor rules. even those are open to a measure of interpretation. a lot of guys on this board are just real sensitive about this topic because they are busting their tails to pay the outrageous overhead that comes with “having employees” and still be able to turn a profit. they don’t like the idea of competition not playing on a level field.
for me it’s more about not being able to keep good help unless you can offer employment. 1099’s get old for guys who are serious about their work.
as to your original question, it sounds like you have some leverage with to guy who’s supplying you the work. maybe make him a counter-offer and try to squeeze some more $ out of him…
So, Adam. Maybe I am misunderstanding this. Another company is subbing work out to you and you are subbing work out to another guy?
If your “sub” is truly a sub, then it would be a weird arrangement for all three of you to be working at the same site at the same time, but it may work. Is the guy you give work to insured, have an established/registered business etc…?
Subcontractors are not normally referred to as “my guy,” “my worker.”
