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Tractor Talk Discussion Forum

Re: unemployment

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02-17-2013 13:09:29

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My son worked as an independent contractor doing construction. He worked for a couple of different contractors,but they required him to go to the County Clerks Office and get a DBA (doing business as) before they would hire him. And he had to have his own liability insurance too. I don't know if that's tax law or not,but they were adamant about it.

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02-17-2013 13:12:09

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 Re: unemployment in reply to rrlund, 02-17-2013 13:09:29  
Quoting Removed, click Modern View to see

Probably more of a liability and workers compensation issue than UI or tax issue.

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02-17-2013 13:19:07

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 Re: unemployment in reply to Pops1532, 02-17-2013 13:12:09  
Ya,I would think the workmen's comp as much as anything.
I know another contractor who went entirely to that instead of payroll because they were dealing with the courts too much on issues of child support and what not. The court trying to garnishee wages.

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02-17-2013 18:57:56

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 Re: unemployment in reply to rrlund, 02-17-2013 13:19:07  
The big reason is that they don't have to pay the 1/2 SS they would have to for employees. The construction industry has gone to a system where they have few employees. Even the the kid sweeping the floor is a "contractor". Really they ought to make this illegal - or really enforce the existing laws. One of my neighbors was building 40 or 50 houses per year. His only employees were his wife and son. And I don't think they wre really working - he just wanted his kin to get bennies. He told me that even his subs didn't have employees, everybody was a "independent contractor". Then he didn't have to carry insurance on them, either. No unemployment insrance to worry about.

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02-17-2013 19:17:37

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 Re: unemployment in reply to Spook, 02-17-2013 18:57:56  
I worked for a construction company like that for a couple of years. First, you went to the office to see where you were going to work for the day. Then each worker drove their own truck to the job site because you had to provide your own tools for anything you needed. We even had to pay for a Porta-Potty if we wanted one on the job site.

Had to pay our own workers comp. and SS withholdings and unemployment insurance (which was silly because--who would want to pay yourself for unemployment?

Staring pay was $10/hr then after the first year you went to $11/hr. The third year took you to $12/hr. and that was where the pay stopped.

It wound up costing me money to work there. Buying my own tools and gas to drive all over the state. No road time pay or paying for a hotel room/food.

This was during the housing boom 2005-2007.

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