[Misc] Subcontracting rates

[dhg69]

Hi , I'm moving to a small town and was interested in maybe subcontracting for 2 or 3 different copier company's.

question: what do you guys charge these company's per call or per hour/travel etc ?

thank you , Don

[copyman]

Re: Subcontracting rates

Hi , I'm moving to a small town and was interested in maybe subcontracting for 2 or 3 different copier company's.

question: what do you guys charge these company's per call or per hour/travel etc ?

thank you , Don

Last time I did it was $75 per call + gas, tolls, parking. Most calls are under 30 mins. So I would bang out 5-6 service calls and be home by 4pm!

Been too busy with my own customers so wouldn't be able to do it at this point.

I've heard of several other ways of paying a sub but most of it comes down to negoiating a fair price for both parties. It's hard when you have your own business and use to making all the money from a service call

[dhg69]

Re: Subcontracting rates

Last time I did it was $75 per call + gas, tolls, parking. Most calls are under 30 mins. So I would bang out 5-6 service calls and be home by 4pm!

Been too busy with my own customers so wouldn't be able to do it at this point.

I've heard of several other ways of paying a sub but most of it comes down to negoiating a fair price for both parties. It's hard when you have your own business and use to making all the money from a service call

How many years ago was this ?
This industry changes so often, it's hard to know if it would be easier to sub or harder...

[copyman]

Re: Subcontracting rates

How many years ago was this ?
This industry changes so often, it's hard to know if it would be easier to sub or harder...

Around 10 yrs ago.

By the way once you hit $600 for the year you could get taxed so at that point ask to be paid in cash. If they need someone that bad they will pay cash!

[slimslob]

Re: Subcontracting rates

You are aware that as a Form 1099 independent subcontractor you will be required to pay quarterly estimated income taxes and self employment taxes. Self employment taxes are the total of both the employee and employer portions of FICA and Medicare taxes. You will need to keep accurate records, hire a CPA or both. You should at least talk to an account to determine how often you need to submit self employment tax payment as late payment can result in penalties.

[dhg69]

Re: Subcontracting rates

My account said to set up an LLC,
i dont know how this changes when or how you pay Tax .

[Phil B.]

Re: Subcontracting rates

My account said to set up an LLC,
i dont know how this changes when or how you pay Tax .

so was mine.. but you also need to check with state tax laws.. some ignore those charges in the initial calculations of the overall base rates. The employer may also have something to say about what you charge him.

depending on who you 1099 work for you MAY not be compensated for: gas/oil.. tires.. do they have a rider on their car insurance you can claim if using your car?

so many factors to consider

[slimslob]

Re: Subcontracting rates

My account said to set up an LLC,
i dont know how this changes when or how you pay Tax .

The key factor there is the LL. It stands for Limited Liability. It helps protect you personally against law suits and some tax laws. You then work for the LLC. The dealers yo work for pay the LLC. The LLC pays you a salary and all payroll taxes. A little over simplified but I think you get the idea.

[dhg69]

Re: Subcontracting rates

copyman, Smallville suncontracting. If you have a call say 50 miles out and no other calls, do you just charge miles 1 way ?
thanks again Don