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Proper Way to pay subs?

Discussion in 'Commercial Snow Removal' started by Doug406, Nov 17, 2000.

  1. Doug406

    Doug406 Member
    Messages: 65

    My insurance agent has asured me that as long as my SUBS have auto insurance and clean driving record, all I have to do is add them to my LIABILITY insurance. This way I am sure I am covered because I am in control. Then all I have to do is pay them the hourly wage, and send out 1099's. AM I MISSING ANYTHING?? I do not want to be caught at the short end of a law suit someday.

    Oh one other thing, last year when I was auited by the insurance co. they included my subs in with the workmans comp payroll. Are subs covered with my workers comp ins.?

    [Edited by Doug406 on 11-18-2000 at 02:55 AM]
     
  2. PINEISLAND1

    PINEISLAND1 PlowSite.com Veteran
    Messages: 664

    How does he want you to add them to the liability policy-each one by name, or just total number of subs?
     
  3. Lazer

    Lazer Senior Member
    Messages: 399

    The Government wants as many subs as possible to be catagorized as employees. They get the most $ that way.

    There is a list of items which determine if a sub is a sub or an employee. Things such as owning equipment, setting own schedule, working for multiple contractors, etc.

    Most cases a snowplow sub can safely be catogorized as a boified subcontractor and are therefore responsible for their own vehicle and workers compensation insurance.