Re: ethics issue

Subject: Re: ethics issue
From: "M. David Orr" <whitears -at- INTERACCESS -dot- COM>
Date: Thu, 20 Feb 1997 13:58:18 -0600

We employ many W2 contractors. Rules like "no timesheet, no pay" happen
because companies have regular billing cycles to keep their
administrative staffs from going bonkers and to collect money as soon as
possible.

Our staff only has to deal with billing two days a month because we
insist on getting timely timesheets. Otherwise, they would be chasing
down individual contractors all month. Some contractors, believe it or
not, aren't cooperative with paperwork.

With our W2 employees, we pay twice a month. Most clients want net 30
days billing, and the average actual pay time is about 45 days. The
company often has to use a line of credit from a bank to cover the
payout until the collection occurs. The line of credit is secured by the
receivables (billings). If a contractor has missed a billing cycle by
failing to report time, this puts a crunch on the company's cash flow,
particularly if a number of contractors do it.

Most writers are very cooperative in submitting timesheets on time. A
few aren't and often aren't cooperative repeatedly. Hence the rules.

Also, if a contractor expects to be paid on time, isn't it ethical to
submit timesheets on time?
--
M. David Orr
Orr & Associates/Usability Management
7366 N. Lincoln Ave. Suite 101
Lincolnwood, Illinois 60646, USA
Phone: 847-677-1920
Fax: 847-677-7878
Email: whitears -at- orrnet -dot- com
Web: http://www.orrnet.com

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