need a form for sub-sub contractors

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rt66electric

Senior Member
Location
Oklahoma
I'm normally a one horse shop, Recently I have three jobs at once. Fortunately I have found two good compentant journeymen to assist. My delima is how to pay these guys??? It cost way too much time/money to hire bookkeeper/ taxman etc to stay competitive in my arena. I need a small form (discalimer)to have them sign that states that they have their own ins/liabilty workers-comp etc.. along with a w-99 . is this legal ??? or should I pay them cash under the table, or givethem a w-99 and hope for the best???? This arrangement is for short-term per-job basis.. I have in the past "hired" a semi-retired gentleman on a per-charged/hour basis and has worked out well. I would never consider this arrangement for a young inexperienced green horn.
What is the best way to "hire" short term journeymen???
 

JES2727

Senior Member
Location
NJ
It depends on the laws in your area. Here in NJ you would be required to get a "certificate of insurance" from your subs, or cover them with your own Worker's Comp. Also, if he is a sub he is supposed meet the definition of a sub : his own tools, his own materials, directs his own work and bills you for it. He may need to be licensed as well, if you're subbing out work that requires licensing. These are the reasons I just put everyone on the payroll. It's just easier, and seems to be the only really legal way to do it.
 

charlietuna

Senior Member
I agree with "Rewire" here! they can sign all the papers you ask them to do, and they will sign them, but you are responsible in the end. You know the old saying, "when you least expect it,something will go wrong" ! Let one of these guys get hurt and you could loose your whole operation. You are entering an area in payroll concerning workers comp insurance,federal and possible state(?) taxes,etc.. I had an emergency situation where i needed six extra well qualified guys and called another contractor who happened to be slow at the time. I hired him to provide me labor, payed him weekly and it was a win-win situation for everyone. Turned out i used him and he used me for many years after--it gave both our companies a good method of flexability.
 

AVD001

Member
I agree with Charlie. I do the same thing with a good buddy of mine who is also an electrical contractor. It helps smooth things out during the really busy times and the slow times so that your guys get their 40 hours.
 
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