ABSTRACT
Introduction .................................................................................................... 82 Defining Subcontractor and Independent Contractor ................................ 82 Hiring Principles............................................................................................. 85
Picking the Right Person for the Right Job ......................................... 85 Profile of a Subcontractor..................................................................... 88 Advantages and Disadvantages of Working with Subcontractors...... 88 Locating Subcontractors........................................................................ 90 Interviewing ........................................................................................... 91
Interviewing Styles, Formats, and Settings ................................. 93 Interview Questions...................................................................... 94 Mistakes and Pitfalls to Avoid during the Interview ................. 95 Listen for Clichés .......................................................................... 96 Proficiency Testing........................................................................ 96
After the Interview............................................................................... 101 Establishing Rates ................................................................................ 103 Negotiating the Best Deal: Principles of Savvy Negotiations ........... 103 Matching Subcontractor Rates to Priorities ...................................... 104
Secrets for Wise Decision Making ............................................................... 105 Steps to Making a Good Decision...................................................... 107 To Contract or not to Contract.......................................................... 107 Subcontractor Agreements.................................................................. 107 Confidentiality Agreements................................................................. 108 Training ................................................................................................ 112
Setting Deadlines That Subcontractors Can Meet ............................ 113 Establishing Strong Relationships with Subcontractors ............................ 113
Dealing with Difficult People ............................................................. 114 When to Ignore and When to Confront................................... 114
Supervising Subcontractors.......................................................................... 114 Performance Evaluations..................................................................... 115
What and When to Evaluate...................................................... 115 Downfalls of Evaluations ........................................................... 116
How to Terminate a Subcontractor.................................................... 117 Alternatives to Terminating the Subcontractor ................................. 117
IRS Regulations............................................................................................. 117 Defining Employee vs. Subcontractor or Independent
Contractor ................................................................................... 118 Filing IRS 1099-MISC Form...................................................... 119 Consistent Treatment ................................................................. 119 Reasonable Basis for Subcontractor Classification................... 120
State Rules and Regulations ................................................................ 120 Summary and Final Tips.............................................................................. 120 References ...................................................................................................... 122 Additional Reading ....................................................................................... 122
The premise of this chapter is that an independent legal nurse consultant (LNC) will ultimately need to hire someone to assist with the workload. The chapter begins by defining and explaining the term subcontractor, exploring when the business owner should hire one, and reviewing the interview process including negotiating, training, and supervision of the subcontractor. A general review and explanation of the IRS rules and regulations pertaining to subcontractors is included. The chapter ends with a summary of tips and guidelines.
