Being Shafted

[Pixie]

Having run several companies I have quite a bit of commercial experience, and the IRD 80% income test from one source for contractors is widely known.

Considering that Transfeild want former Chorus employees to become self employed contractors,who will get 100% of their work from Transfeild there seems to be a loophole in the rules.

[CookMySock]

Start a mobile sales service in addition to your install business

Maha, Quasi is right. Surely you can buy product at trade somewhere. Mom might enjoy getting out and about and doing the sales thing and drumming up some work.. or not..

Steve

[Lissa]

Its not nice what your former employee did, but then again if it wasnt him it could very well have been someone else? Its getting to be dog eat dog (and tongans eat dog) and people are just looking out for themselves at the moment. Although there are somethings that you just dont do, and thats go behind 'friends backs' but then again are there any friends in business at the moment? Sending you lots of good luck maha and mom, and rotten smelly tomato karma to Tim!

[Waxxa]

geez maha, that sucks big time!

but you guys must prioritise and keep your focus on how to keep the business coming in. Dont worry about Tim cause at the end of the day he is doing what he thinks is good for him.

keep the focus on yourselves guys...I'm sure things will work out for you, you both have good karma and what goes around comes around...

[p.dath]

Considering that Transfeild want former Chorus employees to become self employed contractors,who will get 100% of their work from Transfeild there seems to be a loophole in the rules.

The contract they are offering is non-exclusive, but they are running a considerable risk. If the contractor elects to pay no tax, and the IRD find out, and 80% of their income came from that single source, then the IRD would persue them for not paying PAYE for that employee, plus penalties.

I recall a high profile case where one of Peter Jackson's films used a contractor. The contractor paid no tax. The IRD found this out, determined they had earned more than 80% of their income from a single source, took PJ's company to court, and may them pay PAYE and fines.

Take a further read of this:
http://www.crackerjacks.co.nz/resour...r-or-employee/

However, people often do not realise that it is the circumstances of a situation that will determine if a person can in fact operate as an independent contractor. If it goes wrong, there may be severe repercussions. For example, if a person believes he/she is an independent contractor, but based on the facts, the IRD deems the relationship to be that of employment, the IRD can:

• demand unpaid PAYE from the employer based on grossed up payments
• disallow expenses claimed by the employee, and
• charge both parties penalties and interest.

[Maha]

Keep your chin up mate,
Gabby and I are thinking of you guys.
As many of the others have said...Dont burn any bridges Your Rep is good so that should be good. lol saying that in this dog eat dog world its more who you know as I have found out down here.

Cheers Bruce, another shop 20 mins north has started to fill my days, they think what has happened is an arsehole thing to do. They are big on loyalty and a great bunch to work for. I have done work for them over the years from time to time.

Maha, Quasi is right. Surely you can buy product at trade somewhere. Mom might enjoy getting out and about and doing the sales thing and drumming up some work.. or not..

Steve

Yes Steve, what Quasi said is a good idea but, heres how that works, the suppliers will say no, why? because we are not retailers and those that are will spit shit if any Flooring Wholesalers supply us with floor coverings.

geez maha, that sucks big time!

but you guys must prioritise and keep your focus on how to keep the business coming in. Dont worry about Tim cause at the end of the day he is doing what he thinks is good for him.

keep the focus on yourselves guys...I'm sure things will work out for you, you both have good karma and what goes around comes around...

Yes Tony, already I can see a change in the work load, its been pretty bad for some time, they even asked one of thier other installers if he could teach Tim to lay commercial Vinyl, Dave said ''Fuck off I work alone and aint teaching no bastard only to have my work load dry up'' which would eventually happen.

[ynot slow]

Yes Steve, what Quasi said is a good idea but, heres how that works, the suppliers will say no, why? because we are not retailers and those that are will spit shit if any Flooring Wholesalers supply us with floor coverings.

Bit of a pain in arse to be an owner/layer retailer.But isn't there any wholesalers who have no alliance with retailers,i.e Carpet Court,Flooring Xtra in the area.

Thinking back a few years there was a company advertising on tv,media about supplying carpet at cheap rates,you phoned them for samples which were sent to customer,then the hard part was getting carpet installed,most layers who contracted to stores were told,you sell it we dump you.Can't think of the company.

[Maha]

Bit of a pain in arse to be an owner/layer retailer.But isn't there any wholesalers who have no alliance with retailers,i.e Carpet Court,Flooring Xtra in the area.

Thinking back a few years there was a company advertising on tv,media about supplying carpet at cheap rates,you phoned them for samples which were sent to customer,then the hard part was getting carpet installed,most layers who contracted to stores were told,you sell it we dump you.Can't think of the company.

You may be thinking of Ceard Carpets Tony? not sure on the spelling?

Theres one operating up this way at the moment, Flooring Direct I think?

The company that I contract to at the moment is Flooring xtra.

[ynot slow]

You may be thinking of Ceard Carpets Tony? not sure on the spelling?

Theres one operating up this way at the moment, Flooring Direct I think?

The company that I contract to at the moment is Flooring xtra.

Yep Caird carpets was them.Had a layer who did a bit with them,he also would buy carpet off us as well.Actually both places I've worked with would sell this layer carpet or vinyl in smallish amounts,quite often he'd have little old ladies wanting a room done,he'd pop into see if we had a remnant.

Bet you're glad you had shares in Feltex now,guys I worked with had a few when they were cheap(yeah right)the company bought them,think they had 15-25000 or so they bought 3 years or so ago before they listed I think.

[Maha]

Yep Caird carpets was them.Had a layer who did a bit with them,he also would buy carpet off us as well.Actually both places I've worked with would sell this layer carpet or vinyl in smallish amounts,quite often he'd have little old ladies wanting a room done,he'd pop into see if we had a remnant.

Back in the day, some reatailers wouldn't use layers who supported Caird.

[GIXser]

gutted for ya.. reminds me of years ago, when i employed this young fella. he worked for me for over two years, spend lots on his ongoing training and was real good to him... the day prior to his resignation i gave him a thousand dollar cellphone brand new, as a bit of a bonus.. he accepted.. only to start at a competitor the following day..... i was gutted.. but learned a valuable lesson at the same time..
(no one is with ya forever, and they usually end up competitors

[Maha]

Aaah,the cosy warmth of burning bridges

No burning of bridges at all, its just become a one lane bridge, but I can feel the other lane opening up pretty soon, if the shop in question does in future offer up work, I will certainly look at it. At present, our focus is elsewhere and the comfort level (although aint sparkling) is starting to take effect, albeit gradually. I have been in the trade for 28 years and have been where we are now once before, I managed to work my out of it then and will do so this time round.

[Timber020]

I have decided to put in a restraint of trade clause with new employees. If they leave they are welcome to set up there own businesses, but not on my turf and not taking my clients with them.

[ynot slow]

Back in the day, some reatailers wouldn't use layers who supported Caird.

Yep was pretty much the option available to the shop owner and fair enough with their overheads.
A company I worked with had 1 prep,4 layers(2 were apprentices)and boss and manager could lay,that was one branch.They had trained numerous guys who went contracting,but hardly used them.Silly thing was the 2 experienced ones could earn shitloads in last 6 years or so subbing to the company.Instead the 4 would lay 120-150mts a week,company charging out at $xymtr,but paying $xy hour to 2tradeys and $xy for apprentices.

[ynot slow]

I have decided to put in a restraint of trade clause with new employees. If they leave they are welcome to set up there own businesses, but not on my turf and not taking my clients with them.

Looked at my last employment contract which said similar,but figure stuff them I came with 20 plus years experience,and if I want to use it for another employer I will.Not setting up myself in competition but working for someone else,as I will be no different to a mechanic taking skills with me,not clients.