Posted on 03/26/2013 10:48:52 PM PDT by JSDude1
Edited on 03/27/2013 4:56:55 AM PDT by Admin Moderator. [history]
Then why isn't it also impacting Kohl's, Costco, Walgreens, or my local grocery store? None of them seem to have a problem keeping their shelves stocked.
And you can add Best Buy to your list of under-staffed stores. I stopped by there yesterday to pick up a copy of "Lincoln" and wandered the shelves for a few minutes to see if there was another movie I might pick up. The shelves looked like they had been looted.
I plan on doing the same thing. I used to be self-employed years ago but then needed to get a job with healthcare benefits. There will be no point in that anymore after Zerocare has taken effect, so it’s time to start my business up again.
When the State Worker's Compensation Division agrees that it is a contractor/subcontractor relationship and not employer/employee, then I guess there should not be a problem.
BTW, his company bills my company, my company pays him. All perfectly legal.
Should read "...my company pays his company...."
The empty shelves may not be due to a lack of employees, but the wrong parameters on how much product is needed for that particular market.
The state department of revenue here in Illinois cracked down on “contractors” years ago, starting with those people you see in grocery stores handing out food samples, they are no longer “contractors” but employees.
Then they went after car dealers that paid their sales people on a commission only basis where they found that many weren’t even making minimum wage, especially in the slow season.
Other states will follow suit if they haven’t done so already, after all, isn’t every state looking for new revenue?
Companies like Wal-Mart and Best Buy sink billions into supply chain management to make sure they know how much product they need for a given market. But that doesn't get it from the truck to the shelves.
That’s different. You are contracting him for a service.
The problem is when employers give a schedule, and expect (under punishment) that they show up and leave on that schedule.
Just trying to warn ‘smart’ Freepers that you will get burned by making your employees ‘sub contractors.’ There is a very specific criteria (long before Obamacare) that defines a sub-contractor.
And believe me, I made a living from construction sub-contractor insurance policy sales. I know how the deal works. The problem is when a company says “I need this done by this time, per our contract” and “I need you at my place of business of operations from this time to this time.” Sadly, many did not understand the difference and got burned by Dept of Labor at a later date. As will the “I’ll just make all my employees sub contractors” will learn under Obamacare.
Same for mechanics. If you require them to be there, in case a customer comes in... if they work 30 hours (by ‘work’, I mean remain on the premises), and do not make minimum of 30 hours times minimum wage, you are screwed. In other words, keep the guys around who WANT to remain there in case work comes in. But you can’t say they can’t leave...
Had this situation with one of my customers too... a car wash company. They would require the employees stay there, but when no customers there, would clock them out. However, if they left, they would be threatened with firing. I had to explain to them, if you require them to remain, they are ON THE CLOCK. Hell, you clock out every McDonald’s employee when no one is ordering a burger? It gave me a distaste to SOME corporate shenanigans back then, and now.
I haven’t noticed a problem at our Walmart. We do the vast majority of our shopping at BJ’s and Costco. However, we have 6 specific grocery items that we buy on monthly trips to Walmart. The only item that Walmart ever seems to run out of is our favorite brand of iced tea.
That's a good thing. For starters, no employee/employer relationship existed between me and those who subcontract under me prior to them subcontracting. Second, they had their own LLC or Subchapter S corporation prior to subcontracting. Third, they carry their own Worker's compensation insurance and Professional liability insurance, as well as auto insurance sufficient to meet the client's demands. Those are in accord with the stipulations of the GSA my company has with the oil company I do work for, and are pretty much industry standard as well.
While subcontractors do not get a bonus or advances, there have been safety awards in the past, awarded to their company. Such incentives are reasonable between companies. Usually these occur toward the end of the year. Further, my company policy is to permit subcontractors to invoice for work completed part way through a job to maintain their company cash flow, especially on longer jobs.
Advantages for those in my age bracket are many, but a primary one is that the self-employed can make contributions to a SEPP that are multiples of allowable IRA deductions.
For people who have been through a few boom/bust cycles, this not only shields current revenue from taxes, but affords a means and opportunity to amass a reasonable nest egg before we are just too old to do the work. Other differences in tax code apply as well. As a result, the arrangement is beneficial to all parties involved.
Hardee’s did it to my son (once and I made him quit). He was 16 years old and Hardee’s manager had him come in on his day off to help unload a truck, he had to be there at 7:00 A.M. and wait for the truck to show up and then clock in, unload the truck then clock out and go home. He was there 4 hours before the truck got there.
That was about 25 years ago. Unscrupulous employers make unions look attractive.
I worked at WallyWorld for awhile. I have never seen an organization with such high turnover in management. It was really hard to keep up with who was doing what because of all the new faces. I have also never seen a place where employees were such a low priority. I guarantee you a case of toilet paper sitting on the floor would get ten times more attention from management than a complaint about an employees schedule would.
The having their own workers comp/general liability (as I said, made a living on those sales) will go a long way. Also, if your workers compensation company doesn’t consider them a sub-contractor (ie: having their own policy in their own name, even without an LLC, can get in name alone) you do NOT HAVE A SUB CONTRACTOR.
That’s what’s frustrating here. Seeing many an employer/Freeper just want to wave their magic wand and ‘make’ their employee sub contractors. Can’t change it, but promise, it they won’t like it. Glad you know the up and up on it. I tried to inform my clients of how to go about LEGALLY employing subs. Saved them a ton in fines and also claims...
And that’s why we have such a hard time working AGAINST unions.
They have a place, they certainly did in history. But sadly, some corporations are attempting to override the gains unions made. Please America, don’t make us go back! LOL
The cost is deductible as a business expense, and when subcontractors find out how reasonable the cost is, they don't balk.
Yeah, you can exclude yourself and with no employees, typically really cheap. In Georgia it was $750 policy with a general refund of $500 at audit. So yeah, $250 year is about right. Most people will forfeit Workers Comp claim to making a living...
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