What is a Subcontractor Statement? By definition, it is a type of contract that occurs between the principal contractor and the subcontractor. This is usually done in order to comply with the given laws. Mostly, this laws refers to the Workers Compensation Act of 1987, Payroll Tax Act 2007, and the Industrial Relations Act 1996. A subcontractor statement gives you the utmost right to work with the principal contractor in terms of the construction project, the right to compensated for working on a particular project, and the right to take a full responsibility in case their will be a non-compliance to the given laws. If you ever happen to enter into this kind of agreement and you fail to provide an agreement form, chances would be the responsibilities and the rights would return back to the principal contractor.
10+ Subcontractor Statement Samples
If you are a subcontractor assigned to a specific project and you want to ensure that you will get the pay you deserve, then you should be able to accomplish the agreement. Your principal contractor should always require their subcontractors to give them the agreement in order to keep track of the compensations that they need. This is part of their obligation as the principal contractor. In order to ensure your agreement, a payment claim or certificate of currency is much needed.
1. Subcontractor Statement Template
2. Independent Subcontractor Statement Template
3. Subcontractor Statement
4. Subcontractor Requisiton Statement
5. Worker Compensation Subcontractor Statement
6. Subcontractor Compliance Statement
7. Subcontractor Qualification Statement
8. Subcontractor Satisfaction Statement
9. Subcontractor Sworn Statement
10. Subcontractor Compliance Authorization Statement
11. Subcontractor Statement of Work
How Does a Subcontractor Statement Work?
Take note that if you are not careful enough with the given requirements for the subcontractor statements, you may get the chance to face with an increased liability. So here is what you need to know about subcontractor statements.
Subcontractors declare in their subcontractor statements that they have already met their insurance payment, payroll tax payment, and remuneration obligations. If there would be a case that the principal contractor did not receive a subcontractor statement, they will be faced with various liabilities. As mentioned, there are three given statutes or laws and we will be discussing it here.
- Workers Compensation Act 1987 – according to section 175B(2), “the principal contractor is liable for the payment of any workers compensation insurance premiums payable by the subcontractor in respect of the work done in connection with the contract during any period of the contract unless the principal contractor has a written statement given by the subcontractor under this section for that period of the contract.“
- Payroll Tax Act 2007 – principal contractors are held liable for the payments if they believe or assume that the statements were considered false. Those subcontractors who provide false statements are then proven guilty. The principal contractors can withhold the payment under this law. Another thing is that a principal contractor who paid the payroll tax can lessen their losses.
- Industrial Relations Act 1996 – under the section 127, it states that “a principal contractor is liable for the payment of any remuneration of the relevant employees that has not been paid for work done in connection with the contract during any period of the contract unless the principal contractor has a written statement given by the subcontractor under this section for that period of the contract.“
What should a principal contractor do in this instance?
A principal contractor should make sure that he or she receives a trustworthy subcontractor statement before he or she is going to pay to the subcontractor.
What should a subcontractor do in this instance?
As a subcontractor, you should ensure that you have already complied with your payment obligations and statement obligations to make sure that they can receive the payment they deserve.
How to fill out a subcontractor agreement form?
The subcontractor should agree to have employed workers during the time of the contract, have paid and compensated them, have paid remuneration, have paid the employees with their payroll taxes, and have been given a written statement relieving the principal contractor from his or her liability.
If you want to see more samples and format, try to check out some of the subcontractor statement samples and templates provided in the article for your reference.
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