Subcontractor Insurance

I need to deduct money from subcontractors who don't have proper insurance coverage or a current contractor license. How do I handle that?

Account Setup

You can set up each Subcontractor account to track insurance coverage, and handle expired worker's comp, liability insurance and contractor or professional licenses.

To do that, follow these steps:

  1. Get current insurance info from each of your subcontractors. You'll need the expiration date for the subcontractor's current worker's comp and liability insurance policies.
  2. Choose Subcontractors from the Accounts menu, and locate the subcontractor's account.
  3. Click the Insurance Setup button.
  4. Enter the expiration dates into the Worker's Comp and Liability expiration date fields.
  5. Click in the popup menu and decide what you'll do about expired insurance for this sub. You can ignore it, deduct a percentage from their bill amount, or refuse to pay them. You can also have Goldeneal ask you what to do, each time you bill.

HINT: You can track expiration of any three items for your subcontractor-- it can be three types of insurance, or more than one type of license or registration. You can change the titles in the Insurance Setup window, if you'd like to track different items that what we suggest.

Paying Subcontractor Bills

When you use the Pay Bills command to pay subcontractors, Goldenseal accounting software will check for expired insurance and do whatever you've told it to do.

If a subcontractor can't be paid now because of expired insurance, you'll see an X next to them in the list of subcontractors, and Goldenseal will not write checks for them.

If you are automatically deducting a percentage to cover insurance, Goldenseal will list the deduction as a line item in the itemized billing breakdown.

HINT: It's a good idea to get the subcontractor to list you on their insurance policy, so you'll be notified automatically if the insurance is cancelled.

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