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  1. #1
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    Wages as a sub contractor

    Hey guys, been busy, and off the site for awhile.

    Wanting to hear opinions about pay as a sub contractor. Thinking of starting new job. Should be a great company with a great group of guys. Doing both commercial and residential ac/ furnace/ boilers. Install and service both. Responsible to provide own vehicle, tools, all expenses. Labor rate is 95/ hour here. For this situation what is fair in dollars or percentage in your opinions?

  2. #2
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    May 2009
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    Jacksonville FL
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    Legally that sounds far from qualifying as a sub contractor. But as long as they pay good who cares.

    You cannot run an hvac company and call and pay employees as subcontractors. IRS will eat the boss for lunch when they get a hold of him.

    Goal for employee is
    $70k per year or more

  3. #3
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    Oct 2012
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    Who has to buy/stock parts and materials?

    Employer or Employee?

  4. #4
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    May 2014
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    Bay Area California
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    Do you have a contractors license?

  5. #5
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    Mar 2013
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    swan valley idaho
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    Employer buys parts. I would get 20% of parts profit as well. Employer also maintains truck stock, or i can purchase as needed on thier accounts.
    All other expenses are 100% my responsibility though.

    I do have to carry liability insurance. Idaho is right to work state, no contractor license needed to do this.

  6. #6
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    May 2014
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    Last I heard, a "right to work" state had to do with unions and bargaining agreements. Pretty sure that if you want to work as a contractor, you'll need a contractors license.

    Or you can work under the license of your employer, but then I do not believe you would be a subcontractor.



    Quote Originally Posted by kklobas View Post
    Employer buys parts. I would get 20% of parts profit as well. Employer also maintains truck stock, or i can purchase as needed on thier accounts.
    All other expenses are 100% my responsibility though.

    I do have to carry liability insurance. Idaho is right to work state, no contractor license needed to do this.

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  8. #7
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    It was stated that the company has no employees. Everyone is paid/ hired as subcontractors. Company is licensed ,bonded,insured

  9. #8
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    May 2014
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    Pretty sure the guy is just trying to get out of a lot of paper work. Things like no disability insurance, no unemployment insurance, and nothing being paid into social security are just a few simple examples. And that thing about licensed, bonded, and insured would not cover you, since you would not be an employee of that company.

    Think about it like this . . . Say there is a big job. A general contractor hires his subcontractors. All of the subcontractors are individual business and have to be licensed contractors and carry all of the appropriate insurances.

    One other technicality is that you will never be able to legally quote a price for anything to a customer if you are not a contractor. There are other limitations as well, probably vary by state, things like the max amount you can charge for a job.



    Quote Originally Posted by kklobas View Post
    It was stated that the company has no employees. Everyone is paid/ hired as subcontractors. Company is licensed ,bonded,insured

  10. #9
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    Jan 2010
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    Vancouver Island
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    Let's put it this way......if you are required to foot so many expenses why do you need him? Why not start your own business?

  11. #10
    Join Date
    May 2009
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    Jacksonville FL
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    I did something similar in new construction many years ago, pretty sure it wasn't legal then either. We got paid by the job and everyone had their own liability insurance and a work comp exempt certificate. Not technically a legal arrangement in this state. One licensed guy pulled the permits, it was working with Maronda builders.

    Made good money. Then got license.


    Sent from my iPhone using Tapatalk

  12. #11
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    Mar 2013
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    NJ
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    If you are going to be a contractor, and want to be legal, you need to see a lawyer and a cpa. They will tell very quickly if this business is conforming to IRS rules.

  13. #12
    Join Date
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    Aside from the technicalities does anyone have a number in mind for wages based off the rate of 95/ hr?

  14. #13
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    May 2009
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    Jacksonville FL
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    Keep in mind you'll be on the hook for taxes, social security (7.5%) employers side of social security (additional 7.5%) etc

    $300 per day minimum


    Sent from my iPhone using Tapatalk

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