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Re: in - house contractor


then the consultant would be a sub contractor taking car of his own taxes and would have to carrysome kind of his own insurance, most gli will not cover subs and you will get stuck at audit paying on his 1099, as for the employeefilling in from an employee company, you are required to write the check to the company and they will take taxes out of his check and pay him, that way you are not liable for any insurances as well. I have been down all these roads many times.
Actually i don't know how contractors can charge a sub contractor a percentage or flat rate to cover thier work comp. 2 things on this:
1st thing he not really considered a sub if this is going on.
2nd thing if the prime gets a real audit they are screwed
3rd thing if a sub gets hurt and wants to file a claim on the primes policy it will most likely not get covered.
now there are a few gli's out there that will cover a sub, but if the tax man, ( state or feds ) get hint of this and audit they will give you a list of the criteria that applies to employee / sub relationship to the prime or employer and the prime pays for it.
bottom line,if you are paying for work comp, ask to see the clause where it shows a sub will be covered
(cool)
Jerry Edgar
This is CABL.com posting #185497. Tiny Link: cabl.co/mWp3
Posted in reply to: Re: in - house contractor by specsplicer
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