KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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More on subcontractors [way more than you need to know / Contract Sale Day 4 / Only 6 days left
January 4, 2020
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SALE RUNS THROUGH JANUARY 10, 2020.   SAVE THOUSANDS. ORDERS ARE FILLED IN ORDER RECEIVED [UP TO 6 WEEKS WAIT for sale orders - longer for update orders]  Order today to avoid the wait and price increase.
NOTICE: Price increase for contracts will go into effect January 11, 2020, after the sale, so be sure to order during the sale to get the discount and avoid the increase.  We have not increased the contract prices for several years and the increase will be modest. 

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NOTICE:
    The Standard Form Agreements have been updated for 2020.  If your contracts are from 2018 or earlier you need to update.  For contracts after 2018, changes have been made and you should check with our Contract Administrator, Eileen Wagda, at 516 747 6700 ext 312 to see if your form needs updating.  Contracts purchased after November 1, 2019 are already updated.  Keep in mind that our updates are free for 6 months and half price for 12 months from your original order date. Requests for updates will be processed and sent out after the new orders are processed.  The sale ends January 10, 2020; the sooner you order the sooner you will get the contracts.   
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How to order: order at www.alarmcontracts.com [you don't need a lawyer to figure this out - order during the sale and save thousands of dollars - call our Contract Administrator Eileen Wagda at 516 747 6700 x 312 for assistance]
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Contract sale runs through January 10, 2020, ending at midnight EST. The discount will be applied orders received between now and January 10, 2020 by midnight*.  This will definitely be the best deal of 2020.  Changes have been made and you should check with our Contract Administrator, Eileen Wagda, at 516 747 6700 ext 312 to see if your form needs updating.  We starting adding the updates several months ago so you may be up to date. Keep in mind that our updates are free for 6 months and half price for 12 months***.  Updates will be prepared and sent out after the new orders are processed.  The sale ends January 10, 2020, so please be patient.  When you place the order the full price will come up.  We will apply the discount manually when we process the order.  Contracts will be delivered by email only.


Here's the deal:
    Buy 1 Residential, Commercial or Fire All in One and get $100 off and $50 off Disclaimer Notice
    Buy 2 All in One forms and get $100 off first and $200 off second and $75 off Disclaimer Notice and $100 off alarm.com rider.   Save up to $475.
    Buy 3 or more All in One forms and get same as above and $300 off the third form and $400 off the fourth form.  Save up to $1175.00 [Residential, Commercial, Fire, Home Automation]
    Commercial Mobile Surveillance Lease $1000.  Save $500
    The Fire All in One with Security Rider $1250.00.  Save $325.00  Add the Commercial Fire All in One and the Commercial All in One and get $200 off each.  Save $800.00
    Qualifier Agreement $1200.00   Save $300.00
    Nationwide DIY with monitoring.  $3500.00  Save $1000.00**
    Nationwide PERS with or without GPS tracking. $3500.00  Save $1000.00**
* Your order must be placed on line at www.alarmcontracts.com and received by our office no later than January 10, 2020 by midnight EST.  Orders must contain valid credit card payment and be processed; you will receive confirmation.  
Fill out the order form; the full prices will show and we will apply the discount before processing the order.  Orders arriving after sale ends will be processed at regular published rates.  Orders will be processed in order received.  Rush orders, delivered by email within 48 hours, add 15% - call Eileen to process.
Concierge Clients will receive their Concierge Program Discount on the Sale Price.  Sign up for the Concierge Program before placing your contract order to receive the additional discount.


** Does not include consultation or modification
     What's our Guarantee policy re updates?      
Free updates within 6 months of purchase***      
Half price within 6 months to 1 year***  
*** applies to original purchase only
To check if you need or are entitled to an update contact our Contract Administrator Eileen Wagda at 516 747 6700 x 312.  Free or half price orders are processed after full price or discounted orders are processed.

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More on subcontractors [way more than you need to know] from article on December 26, 2019
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Ken
            This article is in Fox Business today, and expands upon what Tim had to say below. Interesting that I saw both of these on the same day.
            Hope you have a very Happy New Year.
Gary Dawkins
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California law will force small businesses to rethink staffing
    When employers classify workers as independent contractors, they avoid taxes including the 6.2% of salary and wages companies must pay for Social Security and Medicare

Associated Press
California gig economy laws are way for lawmakers to target new revenue: Policy adviser
Independent Women’s Forum senior policy adviser Patrice Lee Onwuka discusses an increasing number of states forcing employers to reclassify freelance workers as full-time.
            A California law that makes it harder for companies to treat workers as independent contractors takes effect next week, forcing small businesses in and outside the state to rethink their staffing.
            The law puts tough restrictions on who can be independent contractors or freelancers rather than employees. Supporters say it addresses inequities created by the growth of the gig economy, including the employment practices of ride-sharing companies like Uber and Lyft that use contractors. Company owners with independent contractors must now decide whether to hire them as employees or look for help in other states. Another alternative: asking these workers to start their own businesses, a setup the law allows.
            Although the law affects companies of all sizes and out-of-state businesses that use California contractors, it likely will have a greater impact on the many small businesses that have hired independent contractors because of limited staffing budgets.
            Tamara Ellison has used independent contractors in both her consulting and construction businesses. She's expecting to hire five of her consulting contractors as employees to bring her company into compliance with the law. But she's also thinking she may have to limit the services she offers because not all her hires will have all the skills she needs for all her clients. She may also have to raise her prices, a worrisome proposition.
            "Little companies just trying to start out won't be able to afford our services," says Ellison, whose Ontario, California-based company bears her name.
            Ellison won't need to hire her construction contractors; they're subcontractors, a classification that complies with the new law.
            The law approved by the California Legislature in September codifies a 2018 ruling by the state's Supreme Court that said workers misclassified as independent contractors lose rights and protections including a minimum wage, workers' compensation and unemployment compensation. The ruling came in a lawsuit brought against the delivery company Dynamex; workers around the country have complained    that services like Uber and Lyft have misclassified them as well.
            The law is being challenged in state courts, and companies including Uber and Lyft are campaigning for a referendum on the 2020 election ballot on whether they should be exempt from the law. And employment law attorneys expect the Legislature to add to the list of professions the law already excludes.  
          Independent contractors and freelancers have long been a sore point for federal and state officials who contend that many of these workers are doing work that employees do. When employers classify workers as independent contractors, they avoid taxes including the 6.2% of salary and wages companies must pay for Social Security and Medicare. Employers must also pay for workers' compensation and unemployment and disability insurance.
            For many small business owners, especially those who do a variety of projects requiring different types of expertise, contractors provide more flexibility. Webconsuls, a digital marketing agency with offices in California and Tennessee, bases its hiring decision on the work it has and whether projects are long or short term.
            "We may need a developer who specializes in a specific language to help us build one website," managing partner John McGhee says. "If we don't anticipate having to use that language again in the near future, we'll hire a contractor to build the website."
            The layoffs companies were forced to make during and after the Great Recession encouraged many small business owners to choose independent contractors over employees. Contractors costs less -- they don't get health insurance, 401(k) contributions and other benefits -- and owners don't have to let people go when business slows.
            The new law allows workers to be classified as independent contractors only if companies don't have the right to control their work and how it is done. A number of factors go into making that determination, including how closely the worker is supervised -- for example, who sets their hours. The work being done must not be part of the company's regular business, and the worker's occupation must be distinct from the company's; in other words, a graphic designer cannot be an independent contractor for a graphic design firm.
            There are exemptions for professionals like doctors, lawyers, architects and insurance brokers, but they must have the freedom to set their own hours, negotiate their own fees and exercise their own judgment as they do their jobs. Workers like graphic artists, freelance writers and travel agents can also be exempt if they have similar autonomy. And people who work in barber shops, hair and nail salons and spas can have exemptions, but they have to set their own rates and hours, choose their own clients and be paid directly by the clients.
            Marisa Vallbona has transitioned a contractor who has worked for her in California into an employee, and is being more selective about the work she takes on in the state. Vallbona, who recently moved the headquarters of her public relations firm, CIM, to Houston from California, is now using only Texas-based contractors.
"I don't work with freelancers in California anymore because of the gig economy problems," she says.
            Other companies inside and out of California are likely to follow suit. The increase in remote working over the past two decades has made it easier for companies to find workers anywhere.
            Companies that don't comply with the law face the possibility of penalties running into the tens or hundreds of thousands of dollars, says Nannina Angioni, an employment law attorney with Kaedian LLP in Los Angeles. She's warning clients that the law expands the ability of local officials, and not just state tax officials, to enforce the law starting July 1.
            Moreover, Angioni says, the law can lead to lawsuits brought by workers.
Some owners may believe it's OK to use independent contractors or freelancers because some workers like being part of the gig economy, says Michael Boro, a consultant with PwC whose expertise is in workplace issues.
            "These people don't want to be employees" is the position owners may take, Boro says. But, he warns, they need to follow the law, not workers' wishes.
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Ken
            Regarding Tim’s December 26, 2019 post regarding the State of California and subcontractors, he is correct that California Assembly Bill 5 more narrowly defines the subcontractor relationship.  Any company doing business in California should be aware of this new Bill.  Also be aware, though, that the IRS takes an even stronger position regarding subcontractors.  The IRS is concerned about employee misclassification, so concerned that they have a group with over 700 Revenue Officers that do nothing but hunt down what they consider to be misclassified employees.  In Ken’s response he mentions what the IRS refers to as the “Key Aspect” test.  If you are “contracting” with someone to perform the same services that you already perform (i.e. installing alarm systems) that person is performing a “Key Aspect” of your business.  You are going to be hard pressed to show the IRS that this “contractor” is supplying a service that could not be performed by an employee.  Tim is correct when he points out that “this can create a huge mess…”  If you think that having a State chase you down for unpaid workers comp and withholding is a huge mess, just wait until the IRS knocks on your door. 
            I wrote an article for the December issue of the California Alarm Association Newsletter (The Mirror) http://www.caaonline.org/wp-content/uploads/2019/12/Mirror-Dec-2019-lo-res-for-posting-44-pgs.pdf read it through and, if you use subcontractors, make certain that you are in compliance.  If you do use individuals as subcontractors, and want to continue, make certain that you are properly documenting the relationship.  Having a contract with an individual does not in itself make them a subcontractor, but not having one makes them look even more like an employee.  Ken’s office can supply you with the proper documentation for less than the cost of having your accountant respond to the first notice from the IRS.   
 Mitch Reitman
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To order up to date Standard Form Alarm /  Security / Fire and related forms, click here:  www.alarmcontracts.com
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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.
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NOTICE:  You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles
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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