Issue link: https://read.dmtmag.com/i/213702
WORLD FENCE NEWS • DECEMBER 2013 • Carefully tailoring a subcontractor working agreement can help protect your company Custom Vertical Lift Gate Systems from RISING STAR, INC. BY TOM LUBY, PROFIT BUILDERS INTERNATIONAL with them, but also remember that if this agreement is not fair for both sides, it will not be accepted and likely will not work in the long run. This has to be a win/win scenario for both parties, remembering that another very important goal for your company is your subcontractors' longevity in the workplace. You want to keep a good crew; they are invaluable. Keep them happy and wanting to work for you. Before beginning to review the continued on next page Beautiful! Efficient! Unique! Full system capability • Standard electric or solar power Easy to install! We can ship anywhere in the U.S. (incl. AL & HI) as well as Canada! Call or e-mail us for your free quote today. 800-704-2837 nelsbloom@msn.com • www.rsigate.com Visit World Fence News at FENCETECH2014 - Booth No. 708! SO LA S R OR WWW.ENCONELECTRONICS.COM TE OP ER AT TECH SUPPORT GA HUGE INVENTORY SE CU CD O' S NG NG EN N NI TR A AII Y T TR SY EE ST EM TY TY S RI FR ACCESS CONTROL ON ON LII NE AC AC C CE SS FAST DELIVERY PE RI EN CE COMPETITIVE PRICES EX Last month I touched on subcontractor versus employee classifications and how the government has really been cracking down on enforcement of these classification guidelines. Because of the importance of the new laws and the government's rededication to their enforcement, before we go further on the topic of developing a subcontractors' work agreement policy, I just wanted to reiterate this reminder to first check how your current subcontractor agreements are structured to be sure they are classified as true subcontractors and not employees. This is very important. No doubt this increased enforcement action is directly linked to the implementation of the Affordable Care Act, more commonly known as Obamacare. You can view more information about this important topic at www.healthcare.gov; maybe, that is, if you can get the web site to respond – ha, ha. Sorry, a bit of Ted Cruz humor. Seriously though, this clampdown on the differentiation between subcontractors and actual employees is for real and is not going away anytime soon, so the more you know about it, the better you can protect yourself and your company from costly classification mistakes. The IRS has a program called VCSP – Voluntary Classification Settlement Program, with which you need to familiarize yourself. Also in this IRS memorandum, they reference "The 20 Common Law Factors" that go to Revenue Ruling 87-41. A link to this important web site is: www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/VoluntaryClassification-Settlement-Program. I cannot over-emphasize the importance of knowing exactly what the rules of classification for employees and subs are. OK, now that we have a clear definition of who our subcontractors are, let's begin to look at how we can construct guidelines and rules of conduct for these subcontractors. A true, comprehensive Work Agreement Policy for Subcontractors can and should be quite detailed and thorough. Herein is an example of where more is, indeed, more. Anything left out, no matter how small or trivial it may appear, could come back to bite you. Also keep in mind that in dealing with your subcontractors (if you have any), not only is it better to be completely thorough in your agreement ENCON CONNECTS YOU TO SUCCESS 4 Warehouses / 70+ Manufacturers Thousands of STOCK Products Everyday LOW PRICES on Gate Operators and ALL Access Control Products VISIT US AT BOOTH 535 35 1 Huge Bay Area Location SAME DAY Shipping / Speedy Delivery ~ Free Support / 10 Technicians / Se Habla Espanol Expert Knowledge / CAGOI Certified 800.782.5598 CAGOI CERTIFIED TEAM