We’ve been in business for 4 years and have too much work, so we want to hire some subcontractors. My first question is: how did you create a contractor for your subcontractors to sign? I’m nervous about leaving out some important info. Are there any basic templates I could use?
Also, how do you pay your subcontractors? Percentage? If so, what percentage? Someone recommended instead to pay a pre-determined amount per account.
Any thoughts would be appreciated. Thanks!
If I was you I would read this recent thread. Depending on what state you are in it could be different, but this guy had a problem with subbing out window cleaning because he was told you can not sub out work you do yourself. Be careful with subs, because with workers comp and other fed requirements, this could come back and bite you years down the line.
J
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You can’t be too careful…trust me.
Yeah I got a buddy here in Cali that has a similar business to us, not window cleaning, and he subs his guys that work with him with 1099’s, I need to get a hold of him to have him read your complete thread. Thanks for sharing that horrible experience.
If you are planning on growing your accounts and business please do it correctly. Put them on payroll. You have more control and you limit your exposure to violating state and federal ( IRS ) guidelines that define an employee vs a Sub. I may ruffle some feathers but many window companies do not operate correctly under the IRS guidelines and are risking huge financial liabilities. Not to mention how you treat your customers. Imagine for a moment if you researched a companies to install a fence. You did your due diligence and researched all the companies, took bids, checked references, and settled on “Joes Fence Company " as your best fit. The day of the job a guy pulls up in an old beat-up truck that leaks oil and has spray painted on his truck " Bubba’s Fence Co.”. Bubba ends up screwing up the whole job. Is this how you would want to be treated. KEEP IT PROFESSIONAL ! I am speaking from experience. Read IRS Publication link below and do the right thing:
