Agency Bandits (was Impact of IRS ruling on contractors...)

Subject: Agency Bandits (was Impact of IRS ruling on contractors...)
From: DIANE BACKUS <backus -at- VNET -dot- NET>
Date: Wed, 5 Mar 1997 10:04:11 -0500

Ron,

I agree with you that many technical writers benefit from companies who
provide marketing, promotion and sales work for writers' services.

However, there is a distinction between a "contracting agency" who
finds work for writers and sub-contracts with them on a 1099 basis,
and a "consulting firm" that employs writers on a W2 basis and sends
them out on temporary assignments. While it may be justified for a
contracting agency to withhold payment to it's subcontractors because
of late timesheets, I do not believe it is ever justified for any
company to withhold paychecks from it's (W2) employee (especially
in the case of the writer whose timesheet was a day late--the
original complaint on this thread).

If you are a "consulting firm" and you do not have the cash flow to
make a regular payroll, get out of the business. Be a "contracting
agency" and 'hire' people on a 1099 basis. Writers who go to work
on a W2 basis expect some level of consistency in pay, just as an
employee in an other field would expect.

Diane Backus
backus -at- vnet -dot- net
Backus Business Solutions, Inc.

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