# Subcontractor agreement



## JimMarshall (Jan 25, 2013)

Question for the guys who have sub-contractors working for them.... Does anyone have an agreement that they use that they would be willing to share?
We have worked with all of our subcontractors since back in the day when a handshake meant something, and we have never changed the way we have dealt with them, or required them to sign a service agreement or anything with us, but state law now requires it, or I have to treat them as an employee for workers comp purposes....So I need to get an agreement made up and signed.


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## SnoFarmer (Oct 15, 2004)

X agrees to plow lot Y at $z.
signed by MrPlow.

All I or you should need is the 1099 paper work, a written and signed contract is not needed.

My state doesn't requite a written contract and nether does the IRS,

When auditors first look at this issue, they will ask to see copies of all Forms 1099 issued to your independent contractors. If you have failed to issue 1099s, you can be subject to a penalty and disallowance of the deduction. This can usually be remedied by issuing the required forms. But look out: Some independent contractors may not have declared their income from you because they did not receive a 1099. This is not a good excuse, but the audit could extend to these workers as well.

independent contractor vs employee

http://www.twc.state.tx.us/news/efte/appx_d_irs_ic_test.html

http://www.irs.gov/Businesses/Small...ependent-Contractor-Self-Employed-or-Employee
http://www.irs.gov/taxtopics/tc762.html

ps 
"state law now requires it,"

I'm curious.
Can you post your state info/ requirements or a link to it.
statute number?


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## JimMarshall (Jan 25, 2013)

SnoFarmer;1798999 said:


> X agrees to plow lot Y at $z.
> signed by MrPlow.
> 
> All I or you should need is the 1099 paper work, a written and signed contract is not needed.
> ...


Pennsylvania Workplace Misclassification Act of 2011, AKA act 72.

43 P.S. §§ 933.1 - 933.17


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## SnoFarmer (Oct 15, 2004)

Ok I read most of it.

CONSTRUCTION WORKPLACE MISCLASSIFICATION ACT 43 P.S. §§ 933 ...
occupation, profession or business.

and it does say 
"GENERAL RULE.-- For purposes of workers' compensation, unemployment compensation and improper classification of employees provided herein, an individual who performs services in the construction industry for remuneration is an independent contractor only if:
(1) The individual has a written contract to perform such services. (2) The individual is free from control or direction over performance of such services both under the contract of service and in fact.
(3) As to such services, the individual is customarily engaged in an independently established trade, occupation, profession or business."

but that alone does not show that they are a independent contractor and not a employee.
but it's a start 
I guess the govt is looking for $$


A written contract can be anything, written down and signed by both parties.
Did you have them turn in a bid?

I bet the rest of the states will be requiring something similar.


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## SnoFarmer (Oct 15, 2004)

933.6. Administrative penalties (a) GENERAL RULE.-- When the secretary finds that a person has violated this act,
the secretary may assess and collect civil penalties of not more than $ 1,000 for the first violation, and not more than $ 2,500 for each subsequent violation. 

(b) FACTORS TO BE CONSIDERED.-- When determining the amount of the penalty to be imposed, the secretary shall consider factors including, but not limited to:
(1) The history of previous violations by the employer.
(2) The seriousness of the violation. 
(3) The good faith of the employer. 
(4) The size of the employer's business


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## JimMarshall (Jan 25, 2013)

SnoFarmer;1799009 said:


> Ok I read most of it.
> 
> CONSTRUCTION WORKPLACE MISCLASSIFICATION ACT 43 P.S. §§ 933 ...
> occupation, profession or business.
> ...


They probably turned in a bid many moons ago, all of these people have been working for us since before my time.


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## Chris112lee (Nov 2, 2010)

Give me your email and I can send you a sub agreement


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## TwoBrosLawn (Sep 10, 2009)

I would be interested in that agreement too please [email protected]


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## Mr.Markus (Jan 7, 2010)

TwoBrosLawn;1884637 said:


> I would be interested in that agreement too please [email protected]


It's for his brother...lol.


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## TwoBrosLawn (Sep 10, 2009)

yea thats it go troll somewhere else


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## Bill Grey (Oct 9, 2014)

Jim,
My advice would be to find an attorney who specializes in business law and contracts. Sit with him for an hour. He'll probably charge you nothing. He'll tell you what you need and offer to get you the right sub contractor agreements to properly protect you. Some things you just can't do yourself. 
My 2 cents.................


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## PPMan (Nov 29, 2005)

TwoBrosLawn;1884651 said:


> yea thats it go troll somewhere else


haha, I don't know what that's about but I really like your logo! Who did that for you? Local or internet co.?
Very creative and descriptive!


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