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Brandon-

climber
The Granite State.
Topic Author's Original Post - Dec 3, 2012 - 02:30pm PT
Yeah, I know this is a climbers forum, but how many of you work as 1099 subcontractors?
Do you piece work together?

How do you do it?

I just took a job that's payroll, but only 25 hrs/week.

I'm piecing together the rest of my week with subcontractor carpentry work

Any advice?

Thanks in advance.
Ron Anderson

Trad climber
Soon to be Nipple suckling Liberal
Dec 3, 2012 - 02:38pm PT
yep most of mine in sub contract. Keep very good records all receipts - normal stuff. And pray they dont limit the deductions !!!!!!!!!! Each employer needs to send you a 1099 on time. This is listed as standard income in your circumstance. "other wages" etc. All standard deductions apply.. now anyhow.
meclimber

Trad climber
Newmarket, NH
Dec 3, 2012 - 02:40pm PT
First off, if you are really looking at making a go at this I would say pick up a blanket WC policy that will cover any non-emplyee payroll on your 'company'. I have been a PM for larger firms in NH, and we won't hire anyone without comp. Next I would put together a large list of GC's and other second tier trade specific (roofing, finish, framing, flooring, siding, etc) and start to cold call. Companies are always in need of a little help. Get in with a few and you will start to easily fill in hours. Also, if asked, don't be afraid to bid work. This makes it more attractive for companies. All of the houses I build are already contracted by the time I get them, so in turn I will only hire fixed bid workers to do work. Finally, you want to build up your client base. As in the future this will be your revenue stream. Take on small jobs, call people back and put out as many bids as you can. Good luck.

-Jon Howard

great call ron. Before becoming a PM, I was myself a GC (1999-2008) and just last year got audited and was able to get anyway with the skin of my teeth thanks to records!
treez

Trad climber
99827
Dec 3, 2012 - 02:43pm PT
Up here, the GC will want copies of your specialty liscensing and liability insurance.

GC cuts you a check for the job or your hours and lets the IRS know.

You pay the IRS sooner or later, a little or a lot.
ruppell

climber
Dec 3, 2012 - 02:49pm PT
Check in to your states law on the subject. Here in Cali you can't legally work on a construction site as a sub unless you have a sub trade license or are an employee of a contractor who does. It just depends on how legal you wanna be. If it's just you don't worry about workers comp. It would be a good idea to look into GLI insurance though. It's pretty cheap and covers your ass for any damages you might cause. It's always been my experience that guys that wanna hire you on as a 10-99 are on the shoddy side at best. If it's just you pulling down "handyman" work then just get a business license from your town and have the home owner cut the check directly to the business.
Brandon-

climber
The Granite State.
Topic Author's Reply - Dec 3, 2012 - 03:08pm PT
To be clear, I carry 600k in liability.
TGT

Social climber
So Cal
Dec 3, 2012 - 03:22pm PT
Check in to your states law on the subject. Here in Cali you can't legally work on a construction site as a sub unless you have a sub trade license or are an employee of a contractor who does.

Yep, A contractor can loose his license for using an unlicensed sub.

You also can't legally do work worth more than $500 either.

Laws are radically different from state to state though.
rottingjohnny

Sport climber
mammoth lakes ca
Dec 3, 2012 - 05:14pm PT
TGT..The 500 limit has been raised if i'm not msitaken...RJ
TGT

Social climber
So Cal
Dec 3, 2012 - 05:21pm PT
I get the CSLB newsletter every quarter. Hasn't changed.

http://www.cslb.ca.gov/GeneralInformation/Newsroom/PressReleases/PressReleases2012/News20121019.asp
Peter Haan

Trad climber
San Francisco, CA
Dec 3, 2012 - 05:22pm PT
Or just be real and work for cash, totally off record and no 1099-ing, like hundreds of thousands of others do just the Bay Area.
Brandon-

climber
The Granite State.
Topic Author's Reply - Dec 3, 2012 - 05:24pm PT
Funny, all the reputable carpenters in NH work 1099. Must be a regional thing.

@Peter, it would be great to pay no taxes, but I live in responsibileville.
rottingjohnny

Sport climber
mammoth lakes ca
Dec 3, 2012 - 05:25pm PT
TGT...Your'e right...My bad...RJ
TGT

Social climber
So Cal
Dec 3, 2012 - 05:28pm PT
Funny, all the reputable carpenters in NH work 1099. Must be a regional thing.

Has nothing to do with the reputability, it is The Peoples Republic Kalifornia after all.

We must tax and regulate above all!
Brandon-

climber
The Granite State.
Topic Author's Reply - Dec 3, 2012 - 05:33pm PT
So, what's up?

If I move back to California, I'll be taxed because I'm a carpenter?

That seems wrong.
ruppell

climber
Dec 3, 2012 - 05:37pm PT
Brandon

If you're a carpenter and you move back to Cali just expect to be unemployed. Climbing is great year round though.
meclimber

Trad climber
Newmarket, NH
Dec 4, 2012 - 07:47am PT
In NH we are really moving away from the whole 'self-employed' employed thing. It was great while it lasted but the insurance companies are really starting to crack down on us. But, with no licensing and and just liability needed it is still easy. Call your agent and chesk it out. A blanket WC package that is not payroll related should be about $1000 a year. It will make you much GC's and homeowners alike.
Brandon-

climber
The Granite State.
Topic Author's Reply - Dec 4, 2012 - 08:05am PT
You Cali dudes have it easy. I'm lowballing work at $25/hr just to keep the hours coming.
tradmanclimbs

Ice climber
Pomfert VT
Dec 4, 2012 - 08:06am PT
I was layed off a few days ago and back looking for a carpentry job. I worked on a crew for 2 years as an employee. Got layed off in the spring and worked for a painter all summer as an employee. I did all the sideing, window trim etc. replacement as well as reguler painting duties and finished the season off replaceing the boss's roof. Now its job hunting again. Seems like guys hireing want me to have my own insurance and 1099 me. Pretty sure this is simply a way for them to not have to pay workmans comp etc. So I have to get liability ins but i will have no workmans comp if i get hurt? How does this all work?
Silver

Gym climber
Dec 4, 2012 - 09:21am PT
When you look at work comp Brandon only work on a policy that is based on monthly exposure. Do not do estimated payrolls as they can be a double edge sword and if you over estimate you pay out more than you needed to and getting that back takes time from the insurance company.

Second the reason you GC want you to be 1099 and have your own insurance is it takes the burden of them. Here what they have done is take all the burden off the GC and placed it on the sub. For instance if you want to do a large job for a GC here you need to have Liability and WC with a minimum of 2 million combined. The difference is that here you add the GC AS ADDITIONALLY INSURED. Thats right you add them to your policy rasing your rates and essentially your insurance company covers the GC before his company is forced to cover his ass. Raised my premiums big time when the GC and the insurance guys figured that game out.

Personally i would rather just be a 1099 with my own policies and best case scenario is no employees. If you had to just hire one guy and keep it simple.

Seems like you would have a sh#t load of work to do just south of you in the hurricane hit areas.




Roger Brown

climber
Oceano, California
Dec 4, 2012 - 09:28am PT
Brandon,
I'm just guessing, but 25 an hour is probably about right for the guys working in the housing market here in California. The high paying carpenter jobs are all about what you are qualified to do. We used to just go to work and if you couldn't do the job, you were gone the first day. Now, the more training classes you take, the more quals you have. The more quals you have, the better chance you get the job. Then of course there is the drug testing, background checks, pysch. test, and a bunch of other stuff. You might check into the Nuke jobs there in the north east. I was thinking about heading up there but it looks like I am going to work here next month.
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