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QUESTION:  1099 EMPLOYEE ISSUE
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Ken,
        As always, thank you for your time and energy to send out your news letter! 
    While reading this mornings newsletter you mention:
    " All of your outside sales, 1099 personnel, should sign an Independent Sales Affiliate Agreement. "
    My bookkeeper is an independent contractor, she gets a 1099.  All she does is bookkeeping for us, since she does not do "sales" do we need a contract?  She is a 1099 personnel.
Thank you,
Jeff
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RESPONSE
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    Would you care if your bookkeeper left your employ and went to work for one of your competitors?  How about if she asked a few of your techs to join her?  Would you be concerned that she knows a few things about you or your company that you would prefer remain confidential?  If you have nothing in writing how would you feel if at the end of the year she asked you for the $10,000 bonus you never promised?
    Every employee should sign an Employment Agreement.  Every independent person working for you should sign a Subcontractor agreement or Independent Sales Affiliate agreement.
    I am also concerned that your bookkeeper has been misclassified.  We often discuss misclassifying tech subcontractors, but clerical help can also be misclassified.  If your 1099 bookkeeper isn't working for someone else, is coming and going from your office on their own schedule rather than your's, is truly independent rather than having all of the indicia of an employee, then the bookkeeper is misclassified.  You should be withholding taxes, paying your employer share and listing her on your workers comp policy.  A bookkeeper can get hurt on the job just like anyone else.  So unless your bookkeeper is working for a bookkeeping agency as its employee, which I do not think is the case from your question, consider a reclassification.  In any event, get the bookkeeper and all other employees to sign an Employment Contract.
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WHAT ARE YOU CHARGING FOR SERVICE
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Ken,
   What would you suggest as the best way to find out what other alarm companies in the area are charging for their services?  Any time I call another alarm company to pick their brain they always want to come over and discuss it and of course I don’t want to let on that I’m an alarm company.  I think we’re in the ballpark as far as monitoring but all other services I’m not sure. Any ideas would be very much appreciated. Thanks.
ANON
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RESPONSE
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    Attending and participating in your local alarm association is one way to interact with your competitors and those in your industry in a friendly environment.  Many alarm company owners are willing to share their knowledge with others.  Your customers are likely to clue you in if your prices are out of line.  Customers generally do their research before agreeing to a service, and alarm services are no different in that regard.  The hourly rates of your techs is also going to be a factor.  Maybe you pay yours more than the competition, or maybe you pay yours less, and that can influence what you have to charge.  Same with your general overhead.  Yours may be quite different than your competitors.  
    You have to price your services competitively but you also have to be able to make a profit.  Losing money is no way to grow or stay in business.  If you stay in business long enough you will find out that you can have all the business you want if you don't charge for it.  Not a very good plan of action.  Incidentally, the All in One Agreements are designed to assist you in pricing your services because each service is listed as a separate charge.  Rather than lump monitoring, service, inspection and other services into a single charge the Agreement calls for separate pricing for each service.
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HOW MUCH SHOULD A LICENSE QUALIFIER CHARGE (REPUBLISHED FROM MAY 2)

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Ken,
    I really enjoy your daily newsletter. Its very informative and a must for every security professional.
    I was looking for information regarding what is average fair compensation for an Alarm Business qualifier.   Also, what, if any, responsibilities does each state require from the alarm qualifier.  Any insight would be appreciated. Please keep me anonymous.
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RESPONSE
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    States that require a license to engage in the alarm business all have different qualifications and duties.  For that reason when we prepare a Qualifier Agreement between the alarm company and the Qualifier we customize it for the particular state as well as the specific deal made between the company and qualifier.  The amount a qualifier will want will depend on a number of factors, one of which is the number of companies that qualifier can qualify for.  If it's only one then the qualifier may want more, whereas if it's several the amount may be less.  Qualifier compensation generally runs between $500 to $2000 per month.  That is for qualifying and performing the statutory requirements.  Keep in mind that even in states that don't limit the number of companies a qualifier can qualify for, that qualifier will still have to demonstrate to the licensing agency that the qualifier can perform all of the required duties for all of the licensed companies.  
    In addition to the base compensation the qualifier will want to be reimbursed for actual expenses and time spent in performance of licensed duties.  These rates will vary based on experience of the qualifier.  
    There are different considerations when the qualifier is also regularly employed by the company.  That employee's compensation may already include the license and license duties.
    For our Qualifier Agreement contact our Contract Administrator Eileen Wagda at 516-747-6700 x 312 and she will put you in touch with our attorneys in our Alarm Licensing Department.  Our charge for the Qualifier Agreement is $1500 and the company should pay that charge, not the qualifier.