Are you making the switch from 1099 to W2? How has it been for you?

@kirknessroofinginc5584

2 ай бұрын

We made the change just before the rules went into effect. It was a bit of a shock to the team, but we kept everything about the same with the processes, pay scale, and freedoms of the sales position. The big change was offering a draw of up to $500.00/ week against future commissions. We added the draw to ensure we met any possible minimum wage regulations being contested. As a note, none of the reps have used the draw option. Our cost for the additional taxes and fees extorted by the governmnet will be taken from the bonus pool funds.

@brianbeute209

2 ай бұрын

So, one arm of the government enforces employment designation (W-2 vs 1099) but the other arm bans non-competes. Welcome to Russia.

@kirknessroofinginc5584

2 ай бұрын

@@brianbeute209 It certainly feels like we have switched over towards communism, while they have gone more towards a free market (not completely). I don't recognize the country I grew up in.

@TheRoofStrategist

2 ай бұрын

@@kirknessroofinginc5584 Well said. There's some upsides, but what sucks is the last part you said - "the additional taxes and fees extorted by the government." That's the most frustrating part. No doubt. Glad the transition is going as well as possible!

@TheRoofStrategist

2 ай бұрын

@@brianbeute209 Right?

Maybe the department of Labor should change their name to the department of unemployment

@TheRoofStrategist

2 ай бұрын

🤣

This is fascinating as a contractor working in a completely unrelated field (language translation and interpretation) but I'm just not finding other good information. Thanks for the indepth discussion!

It's been the case for years but had rarely been enforced. It's different now. Just understand the risks. They're big. Philip has been our labor attorney for 20 years and I can highly recommend him!

@TheRoofStrategist

2 ай бұрын

Thank you again for introducing me to him Dave! Super appreciate it.

@DaveSullivanRooferShow

2 ай бұрын

@@TheRoofStrategist Great interview! I just had him back on for the recent change to noncompetes.

@Chavi_VS_BlackCoast

2 ай бұрын

Could this help eliminate fly by night roofing companies that states like Texas deal with?

@DaveSullivanRooferShow

2 ай бұрын

@@Chavi_VS_BlackCoast Unfortunately, they've always been around and always will be. But they're not your competitor. If you want to build a business with true value it starts with having a workforce that is recruited, trained, and retained by you. Employees that want to work for a company with a vision and future to grow with for the long term. That has value. 1099's have no vested interest and are gone for a higher paycheck.

My attorneys say something completely different - get your own legal advice, everyone's ICA agreement is different, and how you operate and work with your independent sales reps may be different.

@TheRoofStrategist

2 ай бұрын

First off - I appreciate the comment and totally agree. Everyone should get their own legal advice. On this topic, I have heard of a couple attorneys giving different advice, but I've spoken to 3 in depth and reviewed the language myself. I would recommend that everyone understand the 6 factors of the "Economic Reality Test" that I breakdown here on the government website: kzread.info/dash/bejne/iWehs6h6eMe_e5M.htmlsi=dWxR8sgxjChpmMnG I personally don't see any way around it, but that's up each person to decide.

Another reason I enjoyed the Trump Administration!

@TheRoofStrategist

2 ай бұрын

Far more business friendly.

This is off the subject of 1099 but I have heard you recommend some books to read I’m new to roofing sales looking to develop personally can you tell me some of the books that you recommend I’m always listening to your videos as I drive and I’ve not been able to write down your recommended reads. Thanks your content has been super helpful so far.

Another crazy idea, it doesnt matter that you WANT to be an IC, they will "force" these rights down our throats 😅😂

@TheRoofStrategist

2 ай бұрын

Unfortunately this is true.

I see this as a big money grab. What about other GC’s? Home builders for example? They are all virtual companies. One or a few ofc employees. The production crews are outsourced. It’s nearly impossible for most roofing contractors to have all W2 employees. Especially sales and production.

@gregbuchta877

2 ай бұрын

Would be very easy to have Sales Guys be W2... lol... why do you think it wouldn't? Quick Books does it all for you....

@TheRoofStrategist

2 ай бұрын

I agree it's a money grab. However, I don't see how it's impossible to have W2 sales people. Production is a different story as workers comp insurance is crazy, and needing to scale up/down for production, balancing seasonality etc. That is much tougher, but there are people who do it.

@toddhall7539

2 ай бұрын

@@gregbuchta877 , because of a lack of cash flow. Much easier for small to midsized contractors to hire multiple 1099 guys on straight commission. It costs the contractor next to nothing to operate that way. Conversely hiring 5 sales reps as w2 employees means having to pay salaries and payroll taxes. Most companies can’t afford it.

I have my 1st unemployment audit ever in 25 yrs next week

@juanjo322

2 ай бұрын

The absolute best of luck to you.

@TheRoofStrategist

2 ай бұрын

That's what triggered it for me, too. I shared a bit of that story in my previous video on this topic: kzread.info/dash/bejne/iWehs6h6eMe_e5M.htmlsi=dWxR8sgxjChpmMnG Wishing you luck my dude.

@shawnyork2083

2 ай бұрын

I have lagit sub crews and lagit w2 office and crews. So should be good

Adam, does this apply to me if I have 0 employees other than myself and just use 1 crew for roof installations but they also do work for other companies other than me. I sub out a LLC company with gen liab and work comp. Thanks

@703DeuceofKirkdaleBeats

29 күн бұрын

I would check with a lawyer but you still may have a problem with the is it a core part of your business part. If you are a roofer it’s easy to classify an accountant as an IC but if you are a roofer they do roofing then it’s a lot harder to prove IC status.

@Cl-1993

5 күн бұрын

Not an attorney… but. I do have a great firm i work with. As long as you dont provide tools, they dont earn almost all of their money from you, and they have signed the proper documents, youre good. If you have sales guys, just have them setup and LLC and get their own GL/WC(even a ghost policy) they are a separate entity and completely legal. As long as the sub contractors have their own companies setup, they are separate entities and not just a 1099 WORKER. People are over complicating things.

@ItsBarnabyJones

5 күн бұрын

@@Cl-1993 Thanks, yea my crews have their own LLC, tools and also do work for other companies to contribute to their annual earnings.

24:00 is void now, no more noncompetes.

@TheRoofStrategist

2 ай бұрын

VERY good catch! We filmed this right before the new law. Thanks for commenting that for everyone else to see.

@Stephensry

2 ай бұрын

@@TheRoofStrategist love your content!

Is this only related to roofing sales 1099 ?

@Cl-1993

5 күн бұрын

All 1099 workers.

Why isn’t guys and gals just get a LLC and continue sale. It’s keep everything the same for taxes for the salesman.

@TheRoofStrategist

2 ай бұрын

This is not even remotely a consideration with the new law. All that matters is the 6 factors of the "Economic Reality Test" which I break down in this video. kzread.info/dash/bejne/iWehs6h6eMe_e5M.htmlsi=mNtXrDtIm8GEgGEL

That's why I tell kids it's better to sell drugs scam or steal them going to a job.

Can I hire this atty in tn?

@ConstructionLawAttorney

2 ай бұрын

Yes, I represent roofing contractors in Tennessee.

@TheRoofStrategist

2 ай бұрын

I would encourage you to reach out and ask. Philip's contact info is in the description.

But what if the "salesman" has his own "business name ect" ? Loopholes??

Guys will just need LLCs now

@TheRoofStrategist

2 ай бұрын

Unfortunately that's not the case at all. Everything boils down to the 6 factors of the Economic Reality Test which I break down in great detail here: kzread.info/dash/bejne/iWehs6h6eMe_e5M.htmlsi=XaxhsbKSqNNCvs4u