Do you want a Contractor vs. Sub-Contractor on your Property?
The IRS has guidelines to define Employees (W-2) vs. Independent Contractors.
Why do Companies use Sub-Contractors?
- Avoid paying payroll taxes
- Avoid paying worker compensation insurance costs
- Avoid health insurance costs
- Avoid overhead costs for trucks and equipment
- No exposure for unemployment filings
These are huge expenses for employers, therefore according to the IRS, 1099 workers must:
- Work for multiple firms
- Provide all their own equipment, vehicles and attire
- Provide their own workers compensation insurance
- Provide their own health insurance
A contractor cannot tell the 1099 workers:
- How, when and where to work
- Properly train the workers
- Hire or fire workers
- Supervise the worksite
- Teach and enforce proper safety requirements
- Inspect for quality
- Require company attire
At AAA Painting Contractors, all of our staff are W-2 employees. It is more expensive, but the right way to manage our production team. We want our team to feel as a valued asset to our company. AAA provides the proper insurance coverage for workers compensation and health Insurance.