Texas based Home Repair and Remodel Contractor and 1099 employee payro

[jeffmensch]

A Texas Home Repair and Remodel contractor had a 1099 employee talk to him about payroll.
I want to know his rights with 1099 employees.

1) Are there any laws with holding checks, for example, 1 week delay?
2) Are there legal issues with waiting until project finished to pay 1099 employees?

 

[army judge]

A Texas Home Repair and Remodel contractor had a 1099 employee talk to him about payroll.
I want to know his rights with 1099 employees.

1) Are there any laws with holding checks, for example, 1 week delay?
2) Are there legal issues with waiting until project finished to pay 1099 employees?

If you're being paid as a 1099, you're a contractor, NOT an employee.
The law doesn't care if you get paid, or not.
If a 1099er fails to be paid, he or she has to sue the person they are working for to get a judgment, hopefully which they can enforce, to eventually receive some money.

If the contractor never paid the 1099er, the criminal law wouldn't take notice.
You see, non-payment of his or her contractors is a civil matter.
The terms of payment are usually addressed in the contract between the parties.

 

[jeffmensch]

reply

If you're being paid as a 1099, you're a contractor, NOT an employee.
The law doesn't care if you get paid, or not.
If a 1099er fails to be paid, he or she has to sue the person they are working for to get a judgment, hopefully which they can enforce, to eventually receive some money.

My questions is: Are there any laws regarding length of time to pay a 1099 independent contractor if there is no written agreement?
Can the person request wages daily or weekly or pay based on company policies?

 

[army judge]

Are there any laws regarding length of time to pay a 1099 independent contractor if there is no written agreement?

No, not directly. If you're the prime contractor, or even a sub, your contract with the party paying you might speak to your duty to pay your contractors.

If you're a contractor, I'd advise you against working for someone without a signed, written contract.

If you employ contractors, you should use a signed, written contract to avoid legal issues and lawsuits.

Can the person request wages daily or weekly or pay based on company policies?

A person can ask you to pay them hourly.

I have no way of knowing what someone's company policies might say.

If you fail to pay your contractors, you'll eventually run out of suckers to work for you.

The law doesn't care how you pay your suppliers, but your suppliers care, and if you fail to pay promptly, you'll be cut off!!!!

As one employing contractors, YOU should determine the frequency of their payments.
Most companies pay at least MONTHLY, some every week.

The key is that payments should be regular and periodic.

 

[jeffmensch]

I am asking about the legal issues with: When to pay a 1099 worker? Is it on the companies payroll policy or whenever the 1099 worker wants money?

 

[army judge]

I am asking about the legal issues with: When to pay a 1099 worker? Is it on the companies payroll policy or whenever the 1099 worker wants money?

I have no idea what any company's payroll policy might be.

A person working under a 1099 isn't an employee.
If he or she isn't an employee, they aren't paid like an employee.
They are paid like a supplier, vendor, BUT not an employee.
Texas law doesn't concern itself with HOW a company pays its suppliers.

If this puzzles you, I suggest you ask your competitors HOW they pay their contractors.
A person working under a 1099 submits an invoice for XX hours worked, at XXX dollars an hour for a total amount claimed.
the invoice is audited, and normally paid after such audit.
Most companies have, as you suggest a written policy addressing this process.
Again, how, or if you pay contractors is of NO concern to the law.

If you buy bricks or lumber from a supplier, you pay off of the invoice the supplier provides you.

The same process applies to those you have working as contractors under a 1099 scheme.

People working under a 1099 are NOT employees, they are vendors, suppliers, or contractors.

 

[txls]

You might want to explain in further detail what your exact situation is, because you seem to be very confused about the difference between employees and contractors. You're using terms like "employees" and "Wages" and "payroll" which have nothing to do with contractors paid by 1099.

 

[jeffmensch]

If an independent 1099 contractor costs a company losing a client and a loss of $3,000, can you withhold payment if you have proof independent 1099 contractor cost the $3,000 loss?

If an independent 1099 contractor cost a company $3,000 and the loss of a client, can you deduct $3,000 from an independent 1099 contractor if you have proof?

 

[army judge]

If an independent 1099 contractor costs a company losing a client and a loss of $3,000, can you withhold payment if you have proof independent 1099 contractor cost the $3,000 loss?

If an independent 1099 contractor cost a company $3,000 and the loss of a client, can you deduct $3,000 from an independent 1099 contractor if you have proof?

You certainly can withhold payment.
When you do that, you can expect the contractor to sue you in small claims for the monies you failed to pay him or her.
You can't just say that the contractor cost you business, you need to go to court and prove it to a judge.
Taking matters into your own hands is often costly, and rarely works out as you might have wished it to do.
If you owe someone one money, pay them, because they usually sue you if you fail to pay them.

 

[jeffmensch]

Client will write a letter saying that due to independent 1099 contractor mistakes, not showing up, and other issues, client cancelled contract, refused to pay remainig balance owed, and work had to be re done

 

[jeffmensch]

Client will write a letter saying that due to independent 1099 contractor mistakes, not showing up, and other issues, client cancelled contract, refused to pay remaining balance owed, and work had to be re done

as Client likes owner but was pissed off with independent 1099 contractor

 

[army judge]

as Client likes owner but was pissed off with independent 1099 contractor

None of that dispenses with your obligation to pay your contractor.
Only a judge can allow you to abrogate and absolve yourself of paying what you've contracted to pay.
You are free to do whatever you want, but if you fail to pay the guy, he'll probably sue you.
In some cases, people kill people when they are owed money.
Let's hope your guy doesn't go "postal".

 

[jeffmensch]

I have serious trouble believing an employer is responsible for paying an independent contractor for work he "screwed" up and costing an employer to lose a client due to the contractor not showing up and being rude

 

[txls]

Then don't pay and see what happens. If they sue, then be prepared to go to court and support your position. You can always choose not to pay if you feel justified in not doing so.