Subcontractor Insurance

Problem

wants to use MacNail construction accounting software to separate worker's compensation payments made to subcontractors

Diagnosis

They withhold some of payments to subcontractor because the sub does not have insurance (worker comp or liability) and general contractor has to cover it.

Solution

Best method is to set up a 2nd account for each subcontractor-- i.e. 11 is Joe's Plumbing, 111 is Joe's Plumbing comp. Set up payment for each. Can then make subcontractor reports, and remove the items that don't apply

NOTE-- Goldenseal accounting software includes tracking of Subcontractor insurance, and easy automatic deductions.

Comments

Entered 2/2/95 by Dennis. Updated 11/10/2010.