Business owners typically have their hands full with the many aspects of operating and managing a small business. Tracking subcontractor costs and coordinating it with payroll duties can lead to confusion and stress. The professional staff at Complete Tax and Notary Services have all of the necessary capabilities to organize, pay, and track independent subcontractors as they work on short-term or long-term projects.

Why is it important to track subcontractor costs?

Payouts to subcontractors should be categorized differently than employee payroll because there are typically no overtime wages, health benefits, or bonus checks associated with a subcontractor’s cost of labor. It is important for business owners to have a strong understanding of how much of their budget is designated towards employee payroll versus the use of independent contractors. Cost analysis and quarterly evaluations can be done by Complete Tax and Notary Services. This type of detailed information will make sure that business owners are spending their budgets wisely.

Workers Compensation and General Liability Insurance

Small business owners will often have to participate in annual liability audits for their insurance carriers. These audits are conducted in order to determine premiums for the next calendar year. Detailed reports must be supplied to auditors that show breakdowns of payroll and subcontractor costs. Any subcontractors that are working for a business owner must also have their own liability insurance in place in order to keep all those in the building, or at a job-site, protected.

Complete Tax and Notary Services can handle all of the required paperwork needed to complete an annual insurance premium audit. Detailed tracking of subcontractors and the hiring costs associated with them will come in handy, while making sure no errors develop during the process of calculating an insurance policy’s premium. Business owners that use insured subcontractors will pay less in premiums than those who are using uninsured contractors or casual labor workers, but meticulous tax records must be kept.

Contact Complete Tax and Notary Services to discuss more options when it comes to handling payroll and tracking subcontractor costs.