The job interview

TOOLS1

The Job Interview

A man, having applied to join the police force in a small south Texas town,
is being interviewed.
The Chief says 'Your qualifications are first-class but there is one test that
you must pass before I can recruit you.'
Sliding a small bag across the desk, he continues
'Take this gun, go out and shoot six illegal immigrants, six suspected felons,
and a rabbit.'

The man says 'Why the rabbit?'
'Fantastic attitude!' says the Chief. 'When can you start?'

TOOLS1

TOOLS1

Talked with the guy from Archadeck in Florance today. Met him at one of his job sites. He was too busy to meet at his house. We discused the work. He says I will need workers comp and general liabilty ins. Said that he could deduct workers comp from job setelments. He also said that he sets up his subs with enclosed trailers for tools. He likes to put the Archadeck logo on them. He is going to meet me later this week and I am going to show him some of my work.
TOOLS

General TOOLS RRG

Don't go blaming the beer. Hank Hill

So much Ice, So much Beer. So little time. Shooter4

I don't have an anger problem. I have an idiot problem. Hank Hill

When I was a child, I thought as a child. But now that I am grown, I just wish I could act like a child and get away with it.

scuta

Sounds like it might be a good guy to work with. Hope it goes well for you!!!



If you must burn our flag, please wrap yourself in it first.

Rebel_James

If you're using your tools on the job, don't leave them in the company trailer. Take the home with you every day. No matter how much trouble that is, that's the only way you can be sure they'll be with you the next morning. Construction tool thefts are a major probem everywhere.


"If they won't give us good terms, come back and we'll fight it out."
-- Gen. James Longstreet

stanman

Good news Tools!
Hope it's a sign of better things ahead.

Night Stalker

Best of luck Tools, you certainly seem worthy of it.

NSDQ!

"Also I heard the voice of the Lord saying who shall I send, and who will go for us? Then said I, here am I, send me." -Isaiah 6:8

competentone

quote:Originally posted by TOOLS1
He says I will need workers comp and general liabilty ins. Said that he could deduct workers comp from job setelments. He also said that he sets up his subs with enclosed trailers for tools. He likes to put the Archadeck logo on them.

Hey TOOLS,

I hope this works out, but I do have to wonder:

If he has enough work, why doesn't he just hire employees?

Especially if he is making sure all liability angles are being covered at the job site with everyone having workers comp. and liability insurance?

Make sure their is enough work. Liability insurance is reasonable enough, but costs for worker's comp. is insane. Be aware if he were deducting worker's comp. from payments to you and not forwarding it to the state (either intentially or just as the result of being "careless") you and any employees you hire will NOT be covered.

You don't have to make an "investment" in the trailer to carry your tools do you?

I don't mean to sound too "suspicious," but just wanted to be sure you're aware of potential problems--if he's honest you shouldn't have problems, but there is no shortage of people in the construction fields who are really lacking in integrity.

select-fire

Compentone you hit the nail on the head.( pun ). Tools this guy should provide you with the insurance ..Not the other way around. He is cutting his expenses down to keep his profit up. Your actually a sub for him and it would be like you hiring someone and requiring a carpenter to have liability and workmans comp before they could work for you. A carpenter would tell you to take a hike. IF he can deduct it from the job settlements he knows what it cost and could provide it. How do you know he is deducting the right amount?

Big Sky Redneck

This sounds alot like being an owner operator with your truck leased to a company. Law requires the insurance and in order for him to be on his jobsite he has to be insured. Since he is an independant he will be paid on a 1099 meaning he does all of his own filings. Like trucking compaines he has insurance available for the contracotr to purchase thru him, actuall that is a better deal because he can get a better deal on some insurances when bought in a larger package. the reasons fro hiring people on a 1099 instead of regualr employees means he does not have to offer health care or benifits or file taxes on him, all he has to do is report his earnings on his own taxes and tools is responsible for for filing his taxes and deductions. The reasons are there for working in that manner and being an independant isnt bad if you know how to work it but if money is not handled right and so on there can be heck to pay.

TOOLS1

7mmnut hit the nail on the head (punn intended). You all have brought up some good points. I am the first to admit that I am not a business man. So all input is welcome.
I would be sub contracting the work. Not actuly working for them as an employee.
I have in the past carried my tools in the back of the truck. Not very long ago several things grew legs and walked away. The jobs are about an hour away from the house. So it would be nice to have a trailer to be abel to leave on the job site. He said that he has helped all his subs purchase there trailers. (I think he writes some of it off as advertising by putting the company logo on them). I do have a line on a used one that is like new and set up with shelves allready[;)][:D]
TOOLS

General TOOLS RRG

Don't go blaming the beer. Hank Hill

So much Ice, So much Beer. So little time. Shooter4

I don't have an anger problem. I have an idiot problem. Hank Hill

When I was a child, I thought as a child. But now that I am grown, I just wish I could act like a child and get away with it.

select-fire

Tools, I would straight up ask the guy , how many subcontractors he is hiring ? Basically then , he is paying you per job. I would ask him to contract each job in writing so you know what you are making prior to hitting the job site. Sears did the same thing on the kitchen cabinets. They sold them in the stores and independant contractors did the work.

TOOLS1

Select-fire He tells you up front what the job pays. You have the right to accept it or not. If you feel that it needs more money you have room to deal.
TOOLS

General TOOLS RRG

Don't go blaming the beer. Hank Hill

So much Ice, So much Beer. So little time. Shooter4

I don't have an anger problem. I have an idiot problem. Hank Hill

When I was a child, I thought as a child. But now that I am grown, I just wish I could act like a child and get away with it.

select-fire

I just wondered how he would handle the pay for you. Just make sure he doesn't play you and have the other contractors bid against one another to get the jobs ( especially if work slows down ). Did you take the Tractor to the auction last night?

Big Sky Redneck

Man did I ever fat finger that post! heck with editing it, I would have to darn near retype the entire thing!

Tools, just like your truck, keep reciepts for everything from gas in the toolhauler to meals. If you buy an inkpen, get a reciept, note book needs a reciept, need new boots? get a reciept, you get the point! Get an accountant that will file your taxes, get him/her an estimate of what you will make and expenses and get an estimate on quarterly taxes, take a small amount from each settlement and pay into the quarter. If you get reciepts like yo uneed to and document every single penny chances are you will get you prepaid taxes back at teh end of the year. Get another checking account as well, deposit all settlements into it and pay for ALL expeses out of that account, pay yourself out of that account as well. If yo usettle for a week and get $2000, pay yourself $1500 and leave $500 in there to go to quarterly taxes and gas for the week. Keep the business money out of Walmart! You need to document every penny out of that account, money used for personal things such as car payments(toolhauler will be deductable so you may want to pay it out of the business) house payments, groceries, allowances, shopping and such needs to be seperate from the business money and should be documented as pay to you. If you do not seperate it then tyour personal taxes are combined into your business taxes and now it will get messy! And remember to always show your business as barley getting by[;)] In 1998 I made $120,000 leased to TRL, if I would have run all of that thru the personal money I woulda been screwed at tax time, instead I showed my truck as absorbing 75% of that and me only netting around $20,000. Got a tax refund! keep it all together and now you are wealthy as far as the IRS is concerned and a higher tax is taken. An accountant will help you and give better advise than I can.

Good luck to you!!!!

bigdaddyjunior

In consruction anyway, the subs carry their own workers comp and liability. That is standard practice. If a builder carried these costs then the sub would only be able to work on that guys jobs. As a sub Tools can work for anyone and his coverage will go with him. If another builder needs a crew asap he would offer a bonus to whatever sub would oblige him. Being independent is being flexible and flexibility is where the money is. The only thing to keep in mind is the time frame for being paid is sacred. If the builder is late on a payment, stop working no matter how he begs and pleads or threatens. If a buider can't keep the cash flow straight he ain't worth working for.

So I spent the afternoon cleaning out the trailer for nothing?

Big Daddy my heros have always been cowboys,they still are it seems

bigdaddyjunior

In consruction anyway, the subs carry their own workers comp and liability. That is standard practice. If a builder carried these costs then the sub would only be able to work on that guys jobs. As a sub Tools can work for anyone and his coverage will go with him. If another builder needs a crew asap he would offer a bonus to whatever sub would oblige him. Being independent is being flexible and flexibility is where the money is. The only thing to keep in mind is the time frame for being paid is sacred. If the builder is late on a payment, stop working no matter how he begs and pleads or threatens. If a buider can't keep the cash flow straight he ain't worth working for.

So I spent the afternoon cleaning out the trailer for nothing?

Big Daddy my heros have always been cowboys,they still are it seems

elect1mike

BE CAREFUL TOOLS I have been there done that and it ended up costing me big at the end of the year. I had my own company for years and the costs far outwayed the profits. Thats why I am looking to work for someone that covers all the insurance and such, for me it added up to over 400.00 out of pocket a month and almost 48% at end of year for taxes social sec. medicare Ect.

col elect1mike Illinois
volinters RRG
I am a man but I can change if I have to,I guess.

competentone

Great comments from everyone!

It's easy to "forget" the total of your expenses--things like the self-employment tax, insurance and the details of the job itself--when you're given a number of what you'll be paid for a job, or if you're working up a bid for a job.

I find I always have to put it on paper and go over the numbers and job step-by-step to make sure I will make money at it. The only time I'll give someone a quick estimate "off the cuff" is if I've done similiar work and am sure what the job entails, but even then I have to be careful--there are variables that can be very different in what looks like a similiar job.

I'd suggest too that you start keeping a log of your vehicle mileage now even as you are just looking at potential jobs--as a "business" you normally will do best taking the IRS mileage allowance (I'm drawing a blank on the number, but I think it's 37 cents/mile) rather than trying to treat your whole vehicle as an expense.

As suggested by 7mm nut: keep those receipts/records, incase you're ever auditted.