KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com
******************************
Words of wisdom for subcontractor engagement / meet in you Las Vegas - schedule meeting
April 5, 2024
*************************
Private and Group meeting schedule now available
*********************************
Group Meetings: See schedule below. Reserve your spot by calling Stacy Spector at 516 987 8428.
Private Meetings:
Schedule a Private Meeting with Ken Kirschenbaum by calling Stacy Spector at 516 987 8428.
Register for a Group Meeting by calling Stacy Spector at 516 987 8428
Schedule Private meeting with broker Rory Russell by calling Stacy Spector at 516 987 8428.
Group Meetings: Topics and Schedule
Tuesday April 9. Group Meeting: 3:00 pm to 4:00 pm – Monetize on your monitoring accounts; new incentive program; learn how to get unheard of incentives from your central station or move to another one. Group meeting conducted by Ken Kirschenbaum.
Wednesday April 10. Group Meeting: 11:00 am to 12:00 pm - Selling and buying alarm accounts; Things to know. Group Meeting conducted by Ken Kirschenbaum.
Wednesday April 10. Group Meeting: 2:00 pm to 3:00 pm – State sales tax and complex company valuation. Group meeting conducted by Mitch Reitman of Reitman Consulting Group.
Wednesday April 10. Group Meeting: 3:00 pm to 4:00 pm – Central station – dealer relationship; contract issues; understanding the dealer agreement terms and why you need the K&K Rider. Group meeting conducted by Ken Kirschenbaum.
Thursday April 11. Group Meeting: 10:00 am to 11:00 am - Insurance for your alarm business – best options; availability, pricing and claims. Group meeting conducted by Shawn Iverson of The Insurance Center.
Thursday April 11. Group Meeting: 11:00 am to 12:00 pm – Contracts – which ones you need and why you need them. Group meeting conducted by Ken Kirschenbaum.
Thursday April 11. Group Meeting: from 3:00 pm to 4:00 pm -
The Corporate Transparency Act. Group meeting conducted by Mitch Reitman of Reitman Consulting Group.
Private Meetings with Rory Russell of AFS:
Schedule a private meeting with Rory Russell of Acquisition and Funding Services (AFS) to discuss buying or selling security, fire and integration business. Available times to meet with Rory Russell are as follows: Wednesday April 10 and Thursday April 11 between 7:30 am and 11:00 am and 12:30 pm and 4:00 pm. Contact Stacy Spector to schedule a private meeting with Rory. Call 516 987 8428
ALL TIMES ARE PACIFIC STANDARD TIME.
Contact Stacy Spector, Esq. for all scheduling at Sspector@kirschenbaumesq.com or 516-987-8428.
*************************************
Words of wisdom for subcontractor engagement
**********************
Ken,
Reading the message from Name Withheld who asks about the legality of using unlicensed “sub-contractors” to do installations. Your advice was once again spot on regarding the legality of using an unlicensed contractor to perform work for a customer. You are also right when you suggest that “Withheld” make them employees. When considering hiring a “sub-contractor” there is another consideration. If the “sub-contractor” can’t legally work other than as an employee (after being properly registered) then the IRS is going to have something to say about this as well. The IRS believes that 60% of “contractors” are actually employees and it has formed a task force with over 1,000 Revenue Agents and Officers who are visiting businesses. They know their stuff and they are very aggressive. If a technician is being paid as an “independent contractor” and they aren’t licensed to do the work, it is going to be a very short, and not very sweet, visit. The IRS will assess taxes, penalties, and interest against the company which include failure to issue a W-2, failure to withhold taxes, failure to pay FICA, failure to pay Medicare, failure to file an accurate 941, and a host of other things that should keep a business owner up at night. The penalties can be as much as the taxes not paid or withheld and can be over $200,000 for a small company.
How is the IRS going to know? They look for 1099s for between $5,000 and $60,000 issued to individuals. Many “contractors” drop by their local H&R Block to get their returns prepared and find that they have to have W-2 income to qualify for many of the tax credits. They aren’t happy and they file a Form SS-9 (determination of employee status) with the IRS. Over 200,000 were filed in 2022. Or, and this may shock you, but the “contractor” may “forget” to pay their Self Employment taxes. The IRS will call them in, discuss their employment arrangement, and determine that they are actually employees, and offer to waive the employer portion of the taxes if they sign a Form 8919 (Uncollected Social Security and Medicare Tax on Wages). The employee also gets to amend their tax return and take thousands of dollars of credits. The IRS gets a deep pocket to collect the taxes from. But wait, there’s more, we have seen cases in which the Revenue Agent offered to waive the employee portion of the taxes if they would offer up names of other “contractors.” The IRS reaches out to them and collects some more low hanging fruit from the employer.
Mitch Reitman
817 698 9999 x 101
Reitman Consulting Group
Fort Worth, TX
http://www.reitman.us
**********************
Response
**********************
Using a subcontractor is OK if it's really a subcontractor. A pretty good rule of thumb is whether the subcontractor works for other contractors or customers directly. A subcontractor with its own employees and all insurance required by a business/employer is also a good determining factor. Properly documenting your relationship with the subcontractor is also important. In the alarm industry the following standard forms are applicable, and you should be using them. Note that they printed forms do have provisions letting you and the subcontractor know what your respective duties and performance obligations are. Follow the contract provisions and stay out of trouble.
Subcontractor Agreement - for hiring company [for install and service techs]
Independent Sales Affiliate [for 1099 sales employees]
********************
STANDARD FORMS Alarm / Security / Fire and related Agreements
click here: www.alarmcontracts.com
***************************
CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304.
***********************
ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ********************
THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily
*************************
Wondering how much your alarm company is worth?
Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth
******************************
Getting on our Email List / Email Articles archived:
Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com
**************************
Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com
|
