Valley of the Sun, Phoenix, AZ

Rules for subcontractor labor

  • 1.  Rules for subcontractor labor

    Posted 01-23-2023 15:54
    We use subcontracted labor (not a labor service, but subcontracted labor) and the accounting team who was here when we contracted with them is no longer here. We've had some questions regarding exactly what we should be paying for, versus what the subcontracting company should pay for. 

    For example, we pay a fee on top of net payroll that is a set percent. We also pay for the laborers' sick days, holiday and vacation time. Someone mentioned we shouldn't have to pay for this because they weren't actual hours that were worked on our job. 

    I'm not sure if there is specific AZ laws about this or not, but does anyone use this type of service that knows the rules on this so that we could at least have some ammunition to go back to them?

    Thank you!

    ------------------------------
    Camille Darney
    Senior Accountant
    Service Direct Landscape
    Phoenix AZ
    (214) 585-1115
    ------------------------------