Proper Way to pay subs?

Doug406

Member
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]
 

Lazer

Senior Member
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.
 
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