Re: Payment Delay in 1099 Employment Contract

Subject: Re: Payment Delay in 1099 Employment Contract
From: "Monique Semp" <monique -dot- semp -at- earthlink -dot- net>
To: "TECHWR-L" <techwr-l -at- lists -dot- techwr-l -dot- com>
Date: Tue, 19 Apr 2011 12:42:57 -0700

An interesting topic with many viewpoints.

I'm incorporated, so my contracts are corp-to-corp, and certainly no company has ever agreed to anything quicker than twice monthly billing, Net-30. And I've had to wheedle and whine at times to even get Net-45 with once-a-month billing.

So this does shine a more favorable light on agencies who agree to "front" the money to provide 6-day payment terms to 1099 independent writers. Those agencies are not only taking on the risk as to whether they will eventually see the money (I'm sure that their vendor terms aren't appreciably better than Net-30), but clearly have to have on hand sufficient cash reserves to pay 1099 workers or be willing to take out expensive short-term loans to do so.

Given that reality, it does make one think that agencies shouldn't necessarily be criticized so severely for the cut they take out of the hourly rate. Although the worker earns less per hour, s/he gains a quicker paycheck with less hassle.

Of course, YMMV, every industry is different, and there are pros and cons to small vs. large companies, agency vs. direct, 1099 vs. W-2, etc., etc., etc :-).



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Re: Payment Delay in 1099 Employment Contract: From: Keith Hood

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