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Taxes and construction jam6444 10-19-2006
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Posted by monz on October 19, 2006, 9:43 pm
Kickstart wrote:
> > If the subs are incorporated, you are under no obligation to 1099 them.
> > If they are not, then technically you should issue a 1099. Whether or
> > not you inform them of this at the start of the project is up to you.
> >
> > Fran
> >
> how do you do that without the proper paperwork ?
> And what if they get hurt on the job while you are paying them ? they can
> claim to be employees.
> Collect on your insurance, sue you for workers comp and you may have to
> finish building a home for them to live in.
> Maybe there's more to this contractor shit than you think
>
> kickstart

There really isn't that much "official" paperwork. I always make a new
sub fill out a simple "Subcontractor Profile" document I came up with.
I want his name and dba, his address, his insurance carriers and most
of all - his Social Security number. If you have a name, an address
and a SS#, or better yet a Federal TaxPayer ID #, all you have to do
at the end of the year is total how much you've paid him. If it's over
$600. you are obligated to send him a 1099. Once those 1099s hit the
mailbox I consider my part of it done - it's up to him from there on.
The important thing is - get his information BEFORE you write him any
checks. If you don't, he will probably give it to you anyway, but get
it beforehand and you're in control of that part at least.

monz


Posted by Matt Barrow on October 19, 2006, 10:06 pm

> Kickstart wrote:
>> > If the subs are incorporated, you are under no obligation to 1099 them.
>> > If they are not, then technically you should issue a 1099. Whether or
>> > not you inform them of this at the start of the project is up to you.
>
> There really isn't that much "official" paperwork. I always make a new
> sub fill out a simple "Subcontractor Profile" document I came up with.
> I want his name and dba, his address, his insurance carriers and most
> of all - his Social Security number. If you have a name, an address
> and a SS#, or better yet a Federal TaxPayer ID #, all you have to do
> at the end of the year is total how much you've paid him. If it's over
> $600. you are obligated to send him a 1099. Once those 1099s hit the
> mailbox I consider my part of it done - it's up to him from there on.
> The important thing is - get his information BEFORE you write him any
> checks. If you don't, he will probably give it to you anyway, but get
> it beforehand and you're in control of that part at least.

This should all be listed and detailed in the contract for sub-contract
labor.



Posted by monz on October 19, 2006, 10:23 pm

Matt Barrow wrote:
> > Kickstart wrote:
> >> > If the subs are incorporated, you are under no obligation to 1099 them.
> >> > If they are not, then technically you should issue a 1099. Whether or
> >> > not you inform them of this at the start of the project is up to you.
> >
> > There really isn't that much "official" paperwork. I always make a new
> > sub fill out a simple "Subcontractor Profile" document I came up with.
> > I want his name and dba, his address, his insurance carriers and most
> > of all - his Social Security number. If you have a name, an address
> > and a SS#, or better yet a Federal TaxPayer ID #, all you have to do
> > at the end of the year is total how much you've paid him. If it's over
> > $600. you are obligated to send him a 1099. Once those 1099s hit the
> > mailbox I consider my part of it done - it's up to him from there on.
> > The important thing is - get his information BEFORE you write him any
> > checks. If you don't, he will probably give it to you anyway, but get
> > it beforehand and you're in control of that part at least.
>
> This should all be listed and detailed in the contract for sub-contract
> labor.

Contract for sub-contract labor? I've been building houses for 32
years - know how many "contracts for sub-contract labor" I've entered
into? For framers, roofers, brickies, concrete finishers and misc
others - maybe half a dozen. Around here, we hammer out a price and
both write it down somewhere. It's done on a handshake. Like I said,
if you're worried about 1099s, get his SS#.

monz


Posted by Fran Bragg on October 19, 2006, 10:45 pm

>> > I always make a new
>> > sub fill out a simple "Subcontractor Profile" document I came up with.
>> > I want his name and dba, his address, his insurance carriers and most
>> > of all - his Social Security number.
> Around here, we hammer out a price and
> both write it down somewhere.


Congrats Monz! You just wrote yourself a sub-contract agreement! ;)

You can fancy it up with payment terms and what happens if the sub leaves
mid-job and all the other scenarios if you want, but basically what you are
already doing works just fine as a contract. I would get them to sign and
date it though.

Fran



Posted by monz on October 19, 2006, 11:05 pm
Fran Bragg wrote:
> >> > I always make a new
> >> > sub fill out a simple "Subcontractor Profile" document I came up with.
> >> > I want his name and dba, his address, his insurance carriers and most
> >> > of all - his Social Security number.
> > Around here, we hammer out a price and
> > both write it down somewhere.
>
>
> Congrats Monz! You just wrote yourself a sub-contract agreement! ;)
>
> You can fancy it up with payment terms and what happens if the sub leaves
> mid-job and all the other scenarios if you want, but basically what you are
> already doing works just fine as a contract. I would get them to sign and
> date it though.
>
> Fran

Things are pretty casual around here - not even a contractor's license
requirement. It wasn't very long ago that the county first imposed a
"contractors listing" program. All it takes is a performance bond.
Anyway, thanks for your expertise.


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