We received the
attached notice to Prime Contractors from the Nevada Dept of Employment, Training and Rehabilitation (DETR). Failure to read and adhere to NRS 612.687 may result in the Prime Contractor being held liable for Subcontractor's delinquent taxes.
The prime used to be able to submit these forms quarterly for all Nevada jobs. The state is now asking the Prime to obtain signed forms for each job from subcontractors at the start of a job. Forms are required to be submitted prior to the final payout on the job; however, it is prudent to submit the form every quarter to ensure compliance with taxes as the job is in progress. The form also requires the Prime to list the contract start date, last progress payment and the if applicable, the contract completion date.
This is a lot of tracking and compliance on the Prime's part . Additionally, we have to wait up to 8 weeks after the quarter ends to get the results from the state for which subcontractors are in compliance.
If you are a GC/Prime Contractor, are you requiring the subcontractor to provide a good and sufficient surety bond to cover UE taxes? Are you withholding sufficient money on the contract?
I am curious as to how others are handling this extra burden of record keeping. I do not see a provision for penalty if this is not followed - only that the Prime will be held responsible for delinquent taxes if not paid by the sub.
Your input is appreciated.
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Janet McKeon
Vice President of Finance
Kalb Industries of Nevada, Ltd.
Las Vegas NV
(702) 365-5252
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