Independent Contractors

• 1Within the last three years, have you engaged any contractor to remodel, renovate, install, or do construction-type work on your business premises or facilities that amounted to $10,000 or more?
• 2Have you done this type of construction work on your business premises or facilities once in the last three years or more than once?
• 2aDid you hire the same person or firm in all cases or different people or firms to do different jobs?
• 3Approximately, what was the total value of that job?
• 4Did you put the job up for competitive bid?
• 4aWhat was the primary method used to invite potential bidders?
• 4bAbout how many bid packages or sets of specs did you send out to potential bidders?
• 4cHow many did you actually receive?
• 4dWere you very satisfied, somewhat satisfied, somewhat unsatisfied, or very unsatisfied with the bids you received?
• 4eWhat was the single most important factor that influenced your choice of the winning bid? Was it:?
• 4fWas the bid you selected the lowest priced?
• 4gWhy didn’t you put the job out for bid? Was it because:?
• 4hWas the contractor you used a person with a Social Security number and perhaps an EIN, or was the contractor a business with a name and a business tax ID?
• 4iDid you have a written contract with that individual or business, not including a service agreement of some type?
• 4jWas the contractor bonded?
• 4kWould you definitely, probably, probably not, or definitely not use this contractor again?
• 4lIf the job was completed in 2007 or before, did you send that contractor a federal form 1099 at the end of the year?
• 5In the last three years, has your business employed, either full-time or part-time, a driver or drivers to haul, deliver, transport, or ship goods, commodities, products, packages, waste, messages, or people?
• 6Is driving, hauling, transporting, or delivering goods, commodities, products, packages, waste, messages, or people the primary activity of your business?
• 7A(reason for employee vs contractor) Greater control over times, routes, and performance
• 7B(reason for employee vs contractor) Employee(s) are cheaper
• 7C(reason for employee vs contractor) A steady flow of things to transport
• 7D(reason for employee vs contractor) Had underused resources, such as an underused vehicle or employee, available
• 7E(reason for employee vs contractor) Can better coordinate with other activities in the business
• 7F(reason for employee vs contractor) Employees are more reliable and accountable
• 7G(reason for employee vs contractor) Gives you more flexibility
• 7H(reason for employee vs contractor) Delivery or haul area is relatively small
• 7I(reason for employee vs contractor) Transporting is a potential profit center
• 8Not including the Postal Service, UPS, FedEx, DHL, or similar carriers, in the last three years, has your business engaged another firm with a driver or drivers, or a single person known as an independent contractor to ship, haul, deliver or transport goods, products, commodities, waste, packages, o...
• 9Of all the goods, products, etc., that have been shipped, hauled, delivered, or transported for your business by NON-employees in the last three years, approximately what percent of your shipping costs was spent with the Postal Service, UPS, FedEx, DHL, and similar carriers? Was it closest to:?
• 10Not including the Postal Service, UPS, FedEx, DHL, and similar carriers, would you describe the contractor you most commonly use or used as a person with a Social Security number and perhaps an EIN, or was the contractor a business with a name and a business tax ID?
• 10aDid you, or do you, have a contract or written agreement with that person or business to perform those transportation services? An account number is not a written agreement.
• 10bDoes that person or business work for you frequently, occasionally, or infrequently?
• 10cIf that person or business worked for you in 2007 or before, did you send them a federal form 1099 at the end of the year?
• 10dADon’t have to invest in vehicles or pay insurance
• 10dBMy shipping, delivery, or haul flow is uneven
• 10dCTough to screen and hire qualified drivers
• 10dDOutside contractors are cheaper than employees
• 10dEWe have no experience in transportation
• 10dFHelps cash flow
• 10dGShip relatively little
• 10dHDelivery locations are too far or varied
• 11In the last three years, has your business employed a person or persons to install, service, repair, and/or instruct other employees in the use and maintenance of your firm’s computers and information technology equipment?
• 11aAGreater control over performance and quality
• 11aBEmployee(s) are cheaper
• 11aCThe work flow is steady
• 11aDHelps other employees stay up-to-date on the equipment
• 11aEMore reliable and accountable
• 11aFHelps find new and better ways to use the technology in the context of our business
• 11aGNo waiting for a repair tech or problem solver to get here
• 11aHHad a person already on staff who was interested and skilled on computers
• 12In the past three years, has your business engaged an outside person known as an independent contractor or another business to install, service, repair, and/or instruct other employees in the use and maintenance of your firm’s computers and information technology equipment rather than having an em...
• 12aWould you describe the contractor you most commonly use or used as a person with a Social Security number and perhaps an EIN, or was the contractor a business with a name and a business tax ID?
• 12bDid you, or do you, have a contract or written agreement with that person or business to perform those computer services?
• 12b1Is that document a service contract that came with the purchase of computer hardware, software, or attachments?
• 12cDoes this person or business work for you frequently, occasionally, or infrequently?
• 12dIf that person or business worked for you in 2007 or before, did you send them a federal form 1099 at the end of the year?
• 12eAComputer people need constant retraining and we can’t afford it
• 12eBDon’t need such skills very often
• 12eCTough to screen and hire qualified computer people
• 12eDOutside contractors are cheaper
• 12eEWe have no experience in computers and IT
• 12eFHelps cash flow
• 12eGEasy to get rid of if they don’t work out
• 12eHDifferent problems require different expertise

Volume 8, Issue 6, 2008
ISSN 1534-8326

William J. Dennis, Jr.
NFIB Research Foundation