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We can and do administer contracts for 1099
subcontractors. However, be forewarned, the IRS places strict qualification
guidelines on the types of jobs that are truly performed by independent
contractors and the types of people (sole proprietors) who are true independent
contractors. Unfortunately, not only is the IRS strict, but their guidelines
are sometimes vague. Therefore, we must evaluate the project and the
proposed independent contractor in accordance with IRS guidelines to
ensure that the arrangement is a true “independent contractor” relationship.
For
more information relative to the IRS’ guidelines for independent
contractors, consult IRS Form SS-8 or click
here.
In
addition to IRS guidelines, there are two additional risk factors that
come into play when contemplating whether we will administer a 1099 subcontract.
Specifically, the Subcontractor will be required to sign a subcontract
agreement with Top Echelon Contracting that passes all of our liability
under our contract with the Client through to the Subcontractor. Additionally,
the Subcontractor will be required to provide us with a certificate of
insurance that names Top Echelon Contracting as an additional insured
and waives any right of subrogation that the Subcontractor’s
insurance company might have against us. The amount of insurance that
we require is generally equal to the amount required by our contract
with the Client, but we may, in our sole discretion, make exceptions
under limited circumstances.
NOTICE: Top Echelon Contracting has provided the
content of this page for general informational purposes only. You should
not substitute this information for personal consultation with a qualified
professional in the field, nor should you rely upon this information
in taking any action. No attorney-client relationship will be created
through your use of this Web site, nor from any response from or conversation
with Top Echelon Contracting.
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