Replies

1. 
   EricPaulson | Sep 12, 2009 01:06am | #1

   The 1099 section was interesting to me..............lots of trouble to be had by contractors paying "employees" as 1099 subs.

   I caught this tidbit as well and will comment on it.

   RC: Last year Pennsylvania passed its Home Improvement Consumer Protection Act, which became law as of July 1, 2009. It requires all contractors doing $5,000 or more worth of work a year to register with the state, to have a registration number visible on their vehicles and paperwork, to indicate whether or not they are insured, and for contractors to have a signed contract for work of more than $500 in value. In your view, does such a law help or hurt legitimate home improvement companies?

   DSB: I think it helps legitimate contactors by weeding out those players who cause problems and create a negative reputation with the public. Right now the Pennsylvania law is purely benign. There's no exam. You just have to show that you're a valid operating entity. Unfortunately, once these things get placed in the revenue stream, they change. Suddenly there are background checks, examinations, and it's all more complex. This is where clients call us to handle their registration.

   Eric:  The problem as I see it with laws like this, is that the lawmakers are counting on the lowlifes to obey the law. Duh, like that is going to happen. Sorta like gun control laws. They only affect the law abiding folks in usually in the pocket.

    

    

   "When the spirits are low, when the day appears dark, when work becomes monotonous, when hope hardly seems worth having, just mount a bicycle and go out for a spin down the road, without thought on anything but the ride you are taking." — Sherlock Holmes, 1896

1. 
   Hiker | Sep 12, 2009 02:31pm | #4

   Like the new Pennsylvannia entity, Texas started the Residential Construction Commission a few years back.  The legislature terminated ("sunsetted') them this past session.  In five years they collected about $500 in registration fees, 8 hours of my life in an "Ethics" class and about $2000 in project registration fees.

   It may have eliminated some bad contractors, but really did nothing to help the consumer at all.  THe big builders, tract guys will keep it that way.

1. 
   EricPaulson | Sep 12, 2009 02:35pm | #5

   In these parts builders are exempt. Remodelers and landscapers must be licensed.

   Go figure. 

    

   "When the spirits are low, when the day appears dark, when work becomes monotonous, when hope hardly seems worth having, just mount a bicycle and go out for a spin down the road, without thought on anything but the ride you are taking." — Sherlock Holmes, 1896

2. 
   jimAKAblue | Sep 12, 2009 05:17pm | #7

   I was thrilled to see that registration system get sunsetted. Good riddance, goodbye.

2. 
   hammer1 | Sep 12, 2009 01:57am | #2

   Periodically, my state's department of labor calls me in and I have to bring the business check book. They go through every single check I wrote. If it's to an individual, they want to know all about who it is, why and they make notes to follow up.

   Beat it to fit / Paint it to match

1. 
   frammer52 | Sep 12, 2009 02:13am | #3

   Used to have that occur to me.  I went to an employee leasing company, it eliminated that problem as well as those pesky audits from the insurance companies.

   I could deal with most everything involved with keeping payroll, except those stupid audits!!>G<

2. 
   Piffin | Sep 12, 2009 02:40pm | #6

   Wow! What did you do wrong to come under that sort of scrutiny?I looked at your profile to see what state 'cause I don't wanna be doing business in such a gestapo kinda place.
   Wow. 

    

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