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Independent Contractor, or Not?

SoftSummerBreeze — Sat, 18 Jul 2009 16:39:53 -0800

Supposedly I'm an Independent Contractor. But I never signed a contract. I began working for my most recent employer in early 2005, brought in through a temp agency. I was formally hired 6 months later as a full-time employee with health benefits, vacation time and paid salary vs. hourly. I continued to advance in the company from front desk admin to office manager. There were a number of entities under the primary company umbrella, as well as a non-profit organization. I performed work for all of them. As the economy slowed, so did all the primary businesses, so most of my work was for the non-profit.

At one point my boss came to me and said he was going to have to pay me as an Independent Contractor for "about a month or so" since the primary businesses were struggling financially. I verbally agreed to this without doing my homework as to exactly what it meant to be an I.C. This method of paying me without taxes etc being deducted from my checks continued on for 6 - 7 months of last year. At certain times I would receive standard payroll checks, but more often than not I received a check for my full wages without any deductions.

The '08 tax season was not pretty. In addition to being 1099'd to death I had final taxes to pay on my deceased mother's accounts. Never before in all my working years have I paid at tax time; I've always received a refund. Not so this year. I ended up paying close to $4k!

I spoke to my boss about this and he basically blew me off. My calculations showed that I had been underpaid by over $1k and he refuses to pay me this money - which he agrees he owes me - until some investors come through with their money, which is not likely to happen any time soon. Also, bossman was continuing to pay his portion of my group health and dental insurance through the company.

In January of this year I was told that there was no work for me, but he'd call me in on an as-needed basis. At first I was working about 20 hours per week. Over time that dwindled and I worked a total of 3 hours in May and June. Obtaining my payment for the work I'd done got to be more and more of a joke. I was told that various partners were contributing to my salary and I had to wait for each person to decide to actually pay me. Since I was *not working more than I was working I cleared my office of all personal possessions one weekend. That was about 3 weeks ago.

Toward the end of last month I called the benefits agent to discuss other health and dental insurance options. He recommended I switch to COBRA with the gov't benefit of 65/35 payment split. He called the office to have them process the necessary paperwork and was told by the gal in accounting that I was still employed there and this was not necessary (my changing my insurance).

Today I get an email from my boss sent at 6 AM (??) saying he noticed that I've cleaned out my office, would I please return my office key and call the benefits agent to switch my insurance to COBRA. Damned strange, if you ask me. It took him 3 weeks to notice my office was clean? And why couldn't I have switched to COBRA last month when I asked about it?

But I digress.... I've read up on what being an I.C. entails and what the basic rules are. My boss has pretty much violated all of them, the most glaring being continuing to pay my health and dental insurance as though I were an employee. Beyond that he dictated what hours I would work, and provided me with accrued paid vacation. He's doing all this without my ever having signed an Independent Contractor Agreement.

I'll be taking my key in sometime this next week, but I need to know how best to address this with the boss. I've been collecting unemployment since January and except for the first couple of weeks did not note any income because I wasn't being paid regularly for the work I was doing. In lieu of no Agreement being signed I want to ask him to not 1099 me this year and just call it good. I'll even forego the $1k he still owes me if he's willing to do this. (Is that a good idea, or...)

What other facts do I need to know to let him know that I am not going to play his games and I want to make as clean a break as possible. He's always been one to co-mingle funds and BS creditors like no other. I never cared until it became personal.

Help me go in there armed to the hilt so I can come out relatively unscathed financially.

Thanks.

Help me be an informed remodeler.

medusa — Thu, 30 Apr 2009 18:59:56 -0800

Please recommend resources for learning about home remodeling, particularly basement finishing. I am starting the process of getting the basement of my house finished. (Note that I will not do most of the work myself; I'm planning to hire a contractor.) I would like recommendations for books, websites, or other resources to learn about the remodeling process, what questions to consider, common problems and how to avoid them, what to watch out for, etc.

So far I have read information at www.buildingscience.com, which I think is great. It has specific recommendations about basement finishing that I found helpful.

Other building science resources would be helpful, but I also want to learn about design and planning, budgeting, finding a contractor, negotiating with the contractor, dealing with construction, and anything else I should know but haven't thought of yet.

Contractor Recommendations

gogomickey — Wed, 15 Apr 2009 06:55:41 -0800

Does anyone have any recommendations for contractors in the Washington DC Metropolitan Area? I have bought a house in PG county MD which needs a complete renovation, and I need reliable contractors ASAP. All recommendations would be appreciated.

What is the best way to pay independant contractors of my new web development company?

sideshow — Mon, 23 Mar 2009 00:55:45 -0800

I'd like to hire some designers/copywriters as contractors, how do I handle stuff like "comps" for my clients? Also, is it a common practice to tell the contractor that they will get paid when I get paid by the client? I have some more questions inside. These are partly business process questions and partly "contractor etiquette" questions. I've been a web developer for nine and half years and I'm trying to get my own web development company rolling. I'm definitely doing this "bootstrap" style, but I'm my design/writing skills are weak so I'd like to find people to help me out in those departments.

My first web dev job was for an ad agency, so I'm somewhat familiar with the process of:

1) Talking to the client and getting a feel what they want

2) Have the designers each come with a "comp", or concept

3) Get the client to pick one

4) Do a bunch of revs and get approval

5) Developers/copy writers/designers build the site

6) Client approves, everyone is happy.

If everyone is employees (like they were at my job) this is pretty cut and dry. Everyone would turn in their hours or be on salary and the company would pay them.

But, in my case, these people would be independent contractors.

I haven't found all the people I need, but I may have a couple designers and perhaps one copy writer I can use. But for this question let's say that I hypothetically have 5 designers and 3 copy writers I can send work too.

1) What would be the best setup for paying for comps? Should I tell the designers "Here's what the client wants, spend x hours on an idea"? Or, is there some sort of industry standard "Comp Price"?

2) Is it acceptable to only pay for a design that the client chooses?

3) Is an accepted practice to pay the contractors when I get paid by the client (50% deposit up front, 25% at half way point, 25% at completion)?

4) Is it best to pay by project (with exceptions for client changes or changes that I might ask for) , or just keep it a straight "by the hour" type deal?

5) Is some sort of retainer customary in this situation?

My goal would be to get enough work and capital to build a staff and not have to worry about this sort of issue. But, in the mean time I'm going to have to contract out work that needs skills outside my expertise.

Thinking about hiring out some video production...

aught — Mon, 10 Nov 2008 08:18:39 -0800

The company I work for is interested in doing more with video clips in multimedia/video sales pieces (for tradeshows and sales visits) as well as smaller Flash web pieces for our company site. To that end, one of our marketing managers is starting to talk to video production houses in our area about doing some shoots to give us stock video footage to use in our marketing campaigns. What are the questions you would ask when talking to such outfits you're thinking about hiring? What are the industry standards for video deliverables (file types and formats that can then be redeployed via Premier or Flash into a variety of media)? What red flags should we look for that indicate someone doesn't know what they're talking about and should not be contracted? Thanks!

Help me build a fence.

J-Garr — Wed, 11 Jun 2008 15:23:04 -0800

Seeking recommendations for a contractor to build a wood privacy fence in Portland, Oregon. Also would appreciate advice on hidden costs, things to avoid, contractors to avoid, etc. We're hoping to remove a rotten fence and also greatly expand our fenced yard. Total length would be 297ft with two pedestrian gates. I've found a ton of fence builders in Portland but don't know anyone who has used any of them before. I'm concerned about getting a quote but having the project cost way more than the quote. I'd also like to avoid any shady contractors who might leave the job half finished, use poor materials, or in some other manner screw me over.

Steel or Vinyl Siding in "DEATHMATCH 2008"

quakerjono — Mon, 02 Jun 2008 20:16:58 -0800

Steel or Vinyl Siding: Leaving the general offense to aesthetics of both out of the equation (mostly), which one is better in the Midwest. My 62 year old aunt's house was part of a neighborhood-wide sweep from the city and, along with all her neighbors, she was issued various violations and given a court date. Part of what she has to do is repair the house's wooden siding and paint or get new siding. She has no plans to move, so resale value is not a concern at this time, so siding is attractive because of the low-maintenance and because she's also getting new gutters and windows at the same time.

So far, she's gotten two bids from local contractors. One said he would do seamless steel siding because, generally, it's more expensive than vinyl, but with high oil prices, it's pretty much the same price. The second contractor offers seamless vinyl siding and says it's far superior to steel because it's easier to repair. Both estimates have come in at roughly the same price, so that's not a big concern, either. What I need to know is which is better. Of course, both contractors say theirs is superior, but that's expected. Either my google-fu is weak or there isn't anything really definitive out there regarding the advantages of steel or vinyl in the siding department.

From what I've found, steel is more robust in resisting damage, but when it is damaged from a hail storm (which are becoming distressingly common in Kansas City, where she lives), it's expensive and hard to replace. Vinyl fades, looks cheap and even when Styrofoam-baked (which is what my aunt was considering), it's not very damage-resistant and prone to cracking in cold temps (which, again, kinda common for where she lives). However, it's much easier and cheaper to repair when damaged. She's getting her windows redone at the same time, so architectural concerns aren't that pressing.

Which one should she go with?

what do we ask a contractor and how do we ask it?

amfea — Mon, 25 Feb 2008 20:53:02 -0800

What kind of things do you need to ask a home remodeling contractor, like about liability insurance, bonding and all that? How do you approach this with them? Do you take their word for it or demand proof? My roommate is planning to have some remodeling done on the house (which she owns). Until now, her dad has been able to do all the fixin' up here, but this is a total bathroom replacement and more than he'd be able to do. So we need to find a contractor.

I don't think we'll have any problems finding people through referrals (most of our friends have had work done on their houses and most have been happy with it). But what sort of questions do we need to ask to make sure things will go smoothly, and most importantly, to make sure she's (or we?) is/are covered against damages and lawsuits?

Any advice about

Redoing Bathroom Without Taking a Bath

Xurando — Fri, 22 Feb 2008 06:40:33 -0800

Bathroom Renovation Filter: DIY vs. Contractor We are planning for a bathroom renovation. We would like to keep the cost under $2000. We are replacing a vanity/sink fiberglass shower unit, and tiling floors. I think the hardware will be half the cost. I am concerned about the cost of labor.

When I look at the overall project, my brain says "I can do that." Can I really? What haven't I considered? In the end would I be better off just hiring a plumbing contractor and biting the bullet?

Bonus points for links to inexpensive beautiful, practical bathroom fixtures.

How many people are involved in building the Shuttle?

np312 — Fri, 25 Jan 2008 14:58:42 -0800

About how many people, including contractors and their employees, are involved in building the space shuttle? I'm trying to find the largest number possible of people employed in the building of the shuttle. I'm not just talking relevant NASA employees but anyone, including office managers and even truck drivers in Louisiana, who are in some way working to help build the shuttle. (It's okay if they have other job duties too, like working on Mars rovers or whatever, but they have to somehow be involved in the Shuttle program or its engineering.)

I know this is kind of an impossible question because there are so many different companies involved around the country (like Morton Thiokol, United Space Boosters, Martin Marietta, etc) that create shuttle parts, handle avionics, etc but I'm still hoping to find some data to point me to a ballpark estimate.

Thank you!

A few general questions on hiring a part-time employee

jpep — Fri, 14 Sep 2007 09:26:27 -0800

I'm a one-person website development company. Things have been getting busy lately so I'm thinking about hiring my first part-time employee. This is new to me, so I'm looking for some advice. The plan is to target the local university to find someone with about 10 to 15 hours available per week. I have two initial questions...

1. How complicated is the paperwork/accounting? I do my own accounting, so I'd have to figure out tax withholdings and related stuff. Do I have to somehow 'register' with a government agency regarding taxes, employment, etc?

2. Is it out of line to request that the employee have a laptop to use while doing my work? The alternative is to buy a computer for the part-timer, but that is a pretty big expense.

As an aside, I do work with contractors (1099s) for some projects, but I don't think I can call this part-timer a contractor because I am going to request that they work at my office during a set daily schedule. It won't be project-based work. Is this correct thinking?

Thanks.

Needles in my eyes

terrier319 — Thu, 16 Aug 2007 17:20:47 -0800

The end is near. Now, how do we expedite it? I'm talking about a house renovation, and a contractor who is trying to shake more money out of our pockets at the 11th hour. What would you pay for, knowing that this guy can make our lives a living hell with a mechanical lien or litigation. More inside ... My wife and I are close to completing a massive renovation on our dream house. We were displaced from the house for more than five months (the contractor "verbally" said it would not exceed two months) and have dealt with all of the frustrations of missed deadlines, unfulfilled promises, and the normal ups and downs of a project of this scope. (I told my wife I would rather have needles poked in my eye than endure another one of these projects.)

Generally, we are pleased -- the guy is a premier builder and has done a good job. But as we attempt to close out and get a C-of-O (certificate of occupancy), the builder is now hitting us with charges that we never agreed to -- labor and materials that we always assumed would be part of the overall contract. There are various non-detailed "allowances" for building materials, electrical, etc.

These "extras" were either never presented as our responsibility to pay for or the contractor told us verbally he would cover. So we have been hit with charges for work and materials, post-install, when the contract states that all such "change orders"must be presented in writing and signed off on prior to any work being done. The spirit of this is to give us an opportunity to shop around the prices that are presented.

There are other issues, as you might relate to, associated with on-the-spot decisions made by the builder to deviate from the architect's plan, but these were never presented in the way the contract specified, namely in writing. So we have issues there as well. I have already consulted a lawyer and his advice was to sit down and attempt to negotiate with the builder -- even though he did not follow the specifications of the contract in billing, without approval, after the work was completed.

I know this is a long description (sorry about that) and probably hard to follow, but my questions are the following:

-- would you pursue on the specifications of the contract -- i.e. changes must be presented and approved beforehand -- or attempt to negotiate with the builder since the work is already completed and presumably they have a right to be paid?

-- what is your experience, if any, with the way these things turn out? ... should I be concerned about a lien against my property, is it better to wait it out or attempt to resolve now?

We are not trying to screw the builder (it's not in our DNA to do that to anyone) but we do feel that based on his actions he is trying to suck more money out of us before we complete our dealings with him.

Who will retrofit my house?

The corpse in the library — Wed, 18 Oct 2006 16:36:04 -0800

I want to retrofit my early-60's rambler so it's less likely to kill me during an earthquake (and so I can get earthquake insurance). Any recommendations for companies or contractors in the Seattle area?

O, to replace my windows before summer comes!

delfuego — Tue, 04 Apr 2006 14:42:30 -0800

Does anyone have recommendations for a company to replace windows in Washington, D.C.? I've got a few original, uninsulated, leaded-glass windows that need to go bye-bye. The particulars: I have seven total windows that need to be replaced. They're all over 100 years old, and are all original, single-pane leaded glass; they've also all suffered the ravages of time, and take either a ton of effort (trust me!) to open, or don't open at all. And given what summer's like in Washington, D.C., openable windows are a must.

The house is in Capitol Hill, specifically the Historic Preservation District of Capitol Hill. Because of this, I need to replace the windows in-kind, which means that I need wood windows with the correct configurations (a few are two-over-two windows, and the rest are thin one-over-one windows, all double-hung). I'm looking for a reputable contractor that can measure the frames and get the correct-sized windows, and then replace the old windows with the new ones; it'd be a bonus if the contractor could also clean up the interior frame and put in nice new sills.

It seems that between the home improvement directory sites and the online yellow pages sites, using Google to answer this question just results in a bunch of listings without any idea if the contractors know what they're doing or do good work. Any recommendations?

All Roofing Contractors Suck

anastasiav — Tue, 06 Dec 2005 06:36:33 -0800

I can't seem to find a roofer who is interested in working on my house, but there is water pouring through my kitchen ceiling! I have a section of roof, approx 26 x 6, over my kitchen that needs to be repaired. Water pours through here in buckets whenever it rains. However, despite now having called some 27 roofers I can't seem to get anyone to come and fix it.

I've left lots of messages on answering machines, but they've never called me back. Several have told me "we don't do jobs that small, we'll only replace your whole roof". One actually told me "We never work on old houses." I've tried calling places that friends told me about, places who advertise in our local free weekly, places from the Yellow Pages - you name it. This situation is getting desperate, and its not a job that we can do ourselves.

How do I get a roofer to come and work on my house?

Contracting with your neighbor - wise or unwise?

terrier319 — Thu, 11 Aug 2005 07:35:41 -0800

Contracting with your neighbor -- wise or unwise? We are shopping around a major home improvement job. On the list of contractors is our next-door neighbor and friend, who has recently taken up contracting as a second career after years of doing completely different work. He seems capable enough (he did over his own house beautifully) but something tells me that giving the job to him is not a wise move. I'm thinking about when the crap hits the fan -- as it always does with major jobs like this -- our friendship is doomed. Scratch him off the list or give it a shot?

How do you build a house?

spacewrench — Thu, 10 Feb 2005 21:52:33 -0800

How do you build a house? [+] I'd like to live somewhere nice, after years and years and years in glorified boxes. I'm sick of doors that don't fit quite right, electrical systems installed by certifiable moroons, cheap-ass plumbing fixtures, poorly-installed carpet, and a thousand other annoyances, to say nothing of larger issues like bathrooms that are too small to enter and close the door without an elaborate dance around the toilet.

I can afford a modest-to-moderate amount (depending on location), and I have about an 18-month timeframe that would be especially easy to move at the end of.

How do I find a lot, an architect, contractor, financing, and everything else I need to move into my dream home? What are the big tasks, and how should they be scheduled? How do I figure out how much this is likely to cost? What else do I have to think about?

Was my landlord out of line to pass my key to another tenant?

ODiV — Sun, 18 Jul 2004 13:15:17 -0800

TenantFilter: So I gave permission for the building manager to let a contractor into my apartment to do some fix up work. Not only does she not let him in personally, which is what I thought I okayed, but she leaves the key to another tenant to pass on to the contractor when he shows up. Am I overreacting in thinking that was way out of line? How do I go about responding to something like this? As it turns out, I was home when the contractor showed up. I only found out about this because the guy holding my key told me. Incidentally, this guy really creeps me out. He's like 50 and hangs around all day on the stoop (I don't think he works) with his shirt open. Also, the first time I met him it was like 11 in the morning and he was drunk. Not that that's particularly relevant, it just adds a little flavour.

So I'm thinking at the least I'll confront the building manager and make it very clear that this will not happen again. At most, and I might be overreacting, I'd like to get my lock changed.