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post #1 of 19 (permalink) Old 02-25-2013, 09:24 AM Thread Starter
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Problem..help please

I am a small time contractor in WNY. Over the summer, I took on the $30 safeguard grasscuts in my area.

I subbed them out to a local guy at $20 a lawn..he got lots more on most of them as they were "over a foot".

However, he quit doing the work in early July when he realized he was not making enough money.

He then got another job and worked until recently.

He has now filed an unemployment claim, and is claiming that I misclassified him as an independent contractor instead of an employee.

I'd get hit with a "penalty" of sorts..having to pay all the pack taxes..prolly end up being $1500 or so.


Has anyone been through this before? What is the best way to prove to NYS unemployment that he was indeed an independent contractor and not an employee, so that I am not stuck with a bill?

Thanks in advance for the advice.
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post #2 of 19 (permalink) Old 02-25-2013, 09:44 AM
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w9

I don't know about your state but in SC if the they didn't fill out a w9 then they are not considered a employee
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post #3 of 19 (permalink) Old 02-25-2013, 10:50 AM
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Did you have him sign a contract?
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post #4 of 19 (permalink) Old 02-25-2013, 12:45 PM
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Did he have a Business Name?
Did you pay him by check in that Business name?
Did he provide you an invoice with his Business name?
Did you send him a 1099 Form at the end of January in his Business name?
If you answered no to these, then well I don't have anything else for ya.
If yes is the answer to these questions than he's screwed and your not.
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post #5 of 19 (permalink) Old 02-25-2013, 01:03 PM
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Did he have a Business Name?
Did you pay him by check in that Business name?
Did he provide you an invoice with his Business name?
Did you send him a 1099 Form at the end of January in his Business name?
If you answered no to these, then well I don't have anything else for ya.
If yes is the answer to these questions than he's screwed and your not.
This is waht the UEID people are going to ask.
We had this happen...
we used a contract we signed with a national...removed their name inserted ours...still was no good.
It ended up costing us 61k...yes 61 thousand in back taxes and UEID fees....
Try to deal with UEID so other agencies do not get involved...
WARNING.........................I'm hearing a lot of scuttlebutt that the IRS will be performing audits this year on small business to see if they are using IC's correctly or are they an employee.....

What ever you do do not tell that there was/is the following
time lines
training
directions
company eqiuipment used

Aladay LLC
Property Preservation
New Business Consultant
Custom Glass&Wood
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post #6 of 19 (permalink) Old 02-25-2013, 01:40 PM
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Scrrreeeewwwweeddddddd!!!

In MA, which I assume would run much like NY, you better answer yes to all of Rich's q's. We have a regional that gets audited each year and let me tell you. They make sure we sign a 1099, send in our insurance, and make checks out to the company name.

If you paid this guy under the table or paid to his name and he has no insurance, imho, you'ree screwed.

Plus, you agreed to 30.00 per cut for Safeguard? I couldn't cut the grass, nevermind do the updates for that pricing. They pay me much more than that.
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post #7 of 19 (permalink) Old 02-25-2013, 02:56 PM
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In MA, which I assume would run much like NY, you better answer yes to all of Rich's q's. We have a regional that gets audited each year and let me tell you. They make sure we sign a 1099, send in our insurance, and make checks out to the company name.

If you paid this guy under the table or paid to his name and he has no insurance, imho, you'ree screwed.

Plus, you agreed to 30.00 per cut for Safeguard? I couldn't cut the grass, nevermind do the updates for that pricing. They pay me much more than that.

So many thing wrong with this! SG give $35 lawn cut(a joke there getting between $85 and $105for it) I do not sub things like this out I have employees and pay a payroll company to make sure it done correcty! I too can not cut yards for $35 not enough and I know there taking over half of money for doing nothing!!!!!!!!!!!!!
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post #8 of 19 (permalink) Old 02-25-2013, 06:03 PM
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run him over its only 1-3 done in nine months
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post #9 of 19 (permalink) Old 02-25-2013, 07:37 PM
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I would show them this with his signature on it:

Affidavit of Independent Contractor Status

I, the undersigned subcontractor, after being sworn, state as follows:

1. I am over the age of 18 years and I am an individual or an officer of the below named company or corporation authorized to execute this affidavit. I make this affidavit from my personal knowledge.

2. I maintain a separate business with my own work facility, truck, equipment, materials, or similar accommodations and the name of my business is:

__________________________________________________ ___________________________.

3. I hold or have applied for a federal employer identification number, or I am a sole proprietor.

4. I perform or agree to perform specific services or work for specific amounts of money and control the means of performing these services or work.

5. I incur the principal expenses related to the service or work that I perform or agree to perform.

6. I am responsible for the satisfactory completion of work or services that I perform or agree to perform and I am or could be held liable for a failure to complete the work or service.

7. I receive compensation for work or services performed for a commission or on a per job or competitive bid basis and not on any other basis.

8. I may realize a profit or suffer a loss in connection with performing work or services.

9. I have continuing or recurring business liabilities or obligations.

10. The success or failure of my business depends on the relationship of business receipts to expenditures.

I, _______________________, do certify and affirm by this affidavit that I comply with each of the above ten (10) items. It is my position that I am an Independent Contractor for Florida Workers Compensations purposes.

__________________________________________________ __________________
Signature, Title Date

Social Security or FEIN #: _________________________

The independent contractor should also provide a valid certificate of insurance coverage for any employees and possibly an exemption form for any officers.




______________________________
Notary Signature & Date
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post #10 of 19 (permalink) Old 02-25-2013, 09:38 PM
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Originally Posted by Gypsos View Post
I would show them this with his signature on it:

Affidavit of Independent Contractor Status

I, the undersigned subcontractor, after being sworn, state as follows:

1. I am over the age of 18 years and I am an individual or an officer of the below named company or corporation authorized to execute this affidavit. I make this affidavit from my personal knowledge.

2. I maintain a separate business with my own work facility, truck, equipment, materials, or similar accommodations and the name of my business is:

__________________________________________________ ___________________________.

3. I hold or have applied for a federal employer identification number, or I am a sole proprietor.

4. I perform or agree to perform specific services or work for specific amounts of money and control the means of performing these services or work.

5. I incur the principal expenses related to the service or work that I perform or agree to perform.

6. I am responsible for the satisfactory completion of work or services that I perform or agree to perform and I am or could be held liable for a failure to complete the work or service.

7. I receive compensation for work or services performed for a commission or on a per job or competitive bid basis and not on any other basis.

8. I may realize a profit or suffer a loss in connection with performing work or services.

9. I have continuing or recurring business liabilities or obligations.

10. The success or failure of my business depends on the relationship of business receipts to expenditures.

I, _______________________, do certify and affirm by this affidavit that I comply with each of the above ten (10) items. It is my position that I am an Independent Contractor for Florida Workers Compensations purposes.

__________________________________________________ __________________
Signature, Title Date

Social Security or FEIN #: _________________________

The independent contractor should also provide a valid certificate of insurance coverage for any employees and possibly an exemption form for any officers.




______________________________
Notary Signature & Date
The state of Montana does not recognize this as an executable legal document. I can only guess that there are many other states that will not recognize this document either.

Just because you require somebody to swear to something by signing a document that you provided, doesn't mean that the court is going to see it that way.

Iíve already told you more than I know.
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