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Non-prevailing Wage Contracting

Most independent contractors hired by specialty contractors appear to be in compliance when bidding jobs. But there are three conditions that apply in Washington and California that make them covered workers for whoever hired them. These are:

(1)  If they are a licensed contractor without any Labor & Industries workers’ compensation account, and bring only themselves to the job site, you will pay premiums for them on the contract amount per RCW 51.08.180.

(2)  If they are a licensed contractor with a Labor & Industries  workers’ compensation account, and do not bring an employee or helper, you will pay their premiums on the contract.

(3)  If they are a licensed contractor without a Labor & Industries workers’ compensation account and do bring a helper, you will pay his premiums on the contract. (The Departments should audit them first before they assess premium on whoever hired them.)

Under these field audit directives, it is your responsibility to get these taxes paid or you will pay them.

What these State workers’ compensation departments are doing is making you a Prevailing Wage Contractor without the necessary legislation. This means that you need to pay the premiums on each job to negate any further field audits. This is entirely legal and can be put into your subcontract.

In order to do this, you will use our Contractor Calculator program found at http://www.WKRComp.com that automatically calculates the premiums. You never have to worry about any future field audits because we will defend you for FREE. By Way, this is the first compliance accounting program on the planet!

As painfull at this sounds that the government is telling you how to run your business, it is a reality.  Few businesses change their methods of operations even after an audit, and the States know that. They have re-audited my clients in as little as nine months.

In order to pay as little as possible, you have to beware of how the Departments calcualte these premiums. They use a formual called ‘average hour wage’ which is an unscientific method to charge you more then what the actual premiums should be. Because you did not think these subcontractors were ‘covered workers’,  you did not keep hourly time records while they were on the job and you did not keep how many’units’ they installed.

So, start keeping accurate records while subcontractors are on your job sites and have them sign Time Sheets, too. All of these compliance regulations are programmed into the Contractor Calculator so you can get on with making money, not doing this paperwork and worrying about audits.

Forget to tell you: make each check out the Department and the subcontractor describing the job, date, and month(s) the contract took place. Then you are safe.

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