Re: Subcontractors and billing

Subject: Re: Subcontractors and billing
From: "Gene Kim-Eng" <techwr -at- genek -dot- com>
To: <techwr-l -at- lists -dot- techwr-l -dot- com>
Date: Fri, 6 Mar 2009 07:44:05 -0800

Everything depends on what your client is willing to agree to. Ideally, I'd
prefer to convince my client to take on my subs as additional contractors
billing directly to them at their own rates (by lining up people who will do
portions of the project at lower rates than my own, thus reducing the number of
hours I bill to my client at my higher rate). If this can't be arranged, I'll
try to work out arrangements with my subs to charge me for specific and
individual deliverables (for example, for an illustrator, deliver one figure and
charge me for it), rather than on an hourly or professional services basis, so
that I can record and deduct the expenses for these on the same basis as my
office supplies.

Either of the above methods saves me from the need to submit 1099-MISC forms to
the IRS, provide 1099s to the subs at the end of the year and maintain
year-to-year records (except for my own business deductions, of course)

If you engage people on an hourly or professional services basis and pay them
more than $600 over the course of a year, you must submit 1099-MISC for each to
the IRS, provide them with summary 1099s for the year's payments to them and
maintain records in the event you or they are audited. See the instructions on
the IRS website at http://www.irs.gov/pub/irs-pdf/i1099msc.pdf.

When doing contract work, my priority in engaging others to help me is to make
my life a bit easier, not to begin building a mini-empire as a contract agency.

Gene Kim-Eng


----- Original Message -----
From: "Jeff Jansen" <jeff2 -dot- 0 -at- modestsystems -dot- com>
> I am a freelance self-employed tech writer. I'm considering hiring a
> subcontractor (more junior than I) to work on a project, but I've never
> hired a subcontractor before. I'm wondering how those of you who have done
> this handle the hourly billing arrangement with both the sub and the client.
> Let's say I bill the client for my time at $75/hr. If I pay my sub $50/hr,
> would you bill that time to the client at $50, and then directly bill your
> time reviewing the work and managing the sub at $75? Or would you bill all
> the sub's time at $75, and then let your review and management time come out
> of the $25/hr difference, without billing your actual hours doing that
> particular work? Does anyone use any other scenario that works for them?

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

ComponentOne Doc-To-Help 2009 is your all-in-one authoring and publishing
solution. Author in Doc-To-Help's XML-based editor, Microsoft Word or
HTML and publish to the Web, Help systems or printed manuals.
http://www.doctohelp.com

Help & Manual 5: The complete help authoring tool for individual
authors and teams. Professional power, intuitive interface. Write
once, publish to 8 formats. Multi-user authoring and version control! http://www.helpandmanual.com/

---
You are currently subscribed to TECHWR-L as archive -at- web -dot- techwr-l -dot- com -dot-

To unsubscribe send a blank email to
techwr-l-unsubscribe -at- lists -dot- techwr-l -dot- com
or visit http://lists.techwr-l.com/mailman/options/techwr-l/archive%40web.techwr-l.com


To subscribe, send a blank email to techwr-l-join -at- lists -dot- techwr-l -dot- com

Send administrative questions to admin -at- techwr-l -dot- com -dot- Visit
http://www.techwr-l.com/ for more resources and info.

Please move off-topic discussions to the Chat list, at:
http://lists.techwr-l.com/mailman/listinfo/techwr-l-chat


References:
Subcontractors and billing: From: Jeff Jansen

Previous by Author: Re: Someone to do the "donkey work"? (take II)
Next by Author: Re: What is there is "Donkey Work" you prefer to do yourself? WAS:Someone to do the "donkey work"? (take II)
Previous by Thread: Re: Subcontractors and billing
Next by Thread: Subcontractors and billing


What this post helpful? Share it with friends and colleagues:


Sponsored Ads