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Submitting W-9 through third party, and having to pay for it!!!!

Discussion in 'Business Fundamentals' started by SSS Inc., Jan 11, 2013.

  1. SSS Inc.

    SSS Inc. PlowSite Fanatic
    Messages: 14,376

    We have been asked to submit some basic documents(w-9, certificate of insurance etc.) through a third party website that is now handling these documents for one of our customers. The kicker is that we must also pay a $99.00 administrative fee to this company. If we don't pay we will not be in compliance and apparently cannot be a vendor. The sad part is in about five minutes I could have all of the requested items on our customers desk.

    We have been in the paving and snow removal business for over 50 years and have worked for many very large companies and have never had to pay a fee to submit these basic things. Its only a hundred bucks but then I got to thinking if I had to do this for everyone we work for I'd be out tens of thousands of dollars.

    Has anyone else run into this? Not sure what I am going to do yet. I don't think the management company has thought this through because eventually they will be paying my $100 and every other vendor's $100 themselves once we have a chance to work it into our bids. I'm pretty sure they are already paying this company on their end as well.

    Has anyone else run into this?
     
  2. hatefulmechanic

    hatefulmechanic Senior Member
    Messages: 228

    Interesting, the management company must be using an outside source to handle their compliance. As much as I hate to say it, its a CODB and should be factored into their rates.

    What company is handling this? I work for two different ones and neither have had a submission fee.
     
  3. SSS Inc.

    SSS Inc. PlowSite Fanatic
    Messages: 14,376

    Yes, they are using an outside source. They call themselves "Compliance Depot" out of Texas.

    Some of the larger companies we have worked for have us submit a lot of things through different websites but we never have to pay to do so.

    Like I mentioned I don't think our customer realizes that they will be paying the fee for us in the future. The problem is that we can't add to this seasons contract although I'm slightly tempted to add it to their bill and see what they say. It really wouldn't be much different then the surprise bill I have to pay. Again its only $100 but it kind of irks me that they didn't think this through.
     
  4. hatefulmechanic

    hatefulmechanic Senior Member
    Messages: 228

    I would put it on their as a specific line item of "compliance surcharge" and see what happens along with a note stating that due to an increase in fees from the compliance department, you have to pass it along. Maybe say something about how you are not marking it up at all, as a professional courtesy.
     
  5. theholycow

    theholycow PlowSite.com Addict
    Messages: 1,180

    Seems reasonable to me. If they surprised you by adding another parking lot for you to plow you would charge them more, wouldn't you?
     
  6. SSS Inc.

    SSS Inc. PlowSite Fanatic
    Messages: 14,376

    Of course.

    They're good customers so its one of those deals where I don't want to rock the boat too much but at the same time they need to be aware of how stupid this is. It would take their secretary all of an hour to get the info that we have always provided as well as the other ten vendors they may have for other things.

    Everyone I have talked to so far(other contractors) have never heard of this either.
     
  7. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Basic outsourcing, They figure it will be cheaper then having their own employees do it.So one less body in the company. Also if something goes wrong another layer of protection to the company,they will be able to pass the buck on to them if something goes wrong.
     
  8. SSS Inc.

    SSS Inc. PlowSite Fanatic
    Messages: 14,376

    I get that part and have dealt with these companies before but usually any cost associated with it would be paid by the customer and not the vendor. It would be like me hiring a company to do our payroll then passing the cost of the service on to my employees. Have you run into anyone wanting you to pay for it?
     
  9. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    For me,no. Even utility companies are passing along the cost of sending you the bill. Did you do a direct call to the company your plowing for?See if they will pass along your info.
     
  10. ducaticorse

    ducaticorse PlowSite.com Addict
    from we
    Messages: 1,426

    Sign of the times.....
     
  11. SSS Inc.

    SSS Inc. PlowSite Fanatic
    Messages: 14,376

    Our main contact played dumb like she had no idea why we would be charged. I'm almost tempted to believe her. She also asked that we send them information about what is being asked of us. In the end we'll most likely pay it and try to recoup it along the way.

    I still have yet to find anyone that has ever been charged to submit this information.
     
  12. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Give her the benefit of the doubt
     
  13. Buswell Forest

    Buswell Forest PlowSite.com Addict
    from NH
    Messages: 1,668

    HELLS no. I'd add that $99 fee into the next bill, along with a $25 fee for my time and money being tied up.
     
  14. Spool it up

    Spool it up Senior Member
    Messages: 912

    absolutely , someone has to absorb the non-senseThumbs Up
     
  15. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    That's why they have you!payup
     
  16. SSS Inc.

    SSS Inc. PlowSite Fanatic
    Messages: 14,376

    So we went ahead and sent the information but didn't pay them. Well that didn't work. They sent a third notice alerting me of a "failure to comply". They also mentioned that my customer would like to continue working with us so if we would like to keep working for them blah blah blah. So we called this company and just for the fun of it told them that this is right on the borderline of a scam that the vendor needs to pay this.
    This customer has been good to us and we don't want to rock the boat too much but somebody other than us will be paying for it in the future;);)payup
     
  17. Bandit

    Bandit Senior Member
    Messages: 146

    Last edited: Jan 18, 2013
  18. Buswell Forest

    Buswell Forest PlowSite.com Addict
    from NH
    Messages: 1,668

    They should be understanding of your position. It wasn't your idea to hire a subcontractor for stupid paperwork. It's either talk face to face with the business manager about it, or add $ to the contract to cover it- and I mean retroactively- the next time a new contract is signed. Even if it has to be camouflaged.
     
  19. Spool it up

    Spool it up Senior Member
    Messages: 912

    we call it an " administrative fee" . just sneak it in like all the rest . it needs to go away and be "absorbed" by someone other than your company . it's a hand me down fee

    2-3% of a total bill
     
  20. Spool it up

    Spool it up Senior Member
    Messages: 912

    i'v been absorbing the non sense for quite a while. :laughing: