Whether it’s due to the severe hurricanes that devastated parts of the country, or the recent economic downturn that has contractors desperate for work, contractor fraud claims jumped 31 percent between 2001 and 2008, according to the Better Business Bureau (BBB). With a few exceptions, all businesses or individuals who work on any building, highway, road, parking facility, railroad, excavation, or other structure in California must be licensed by the California Contractors State License Board (CSLB) if the total cost of one or more contracts on the project is $500 or more.
In the United States, any company or organization engaged in a trade or business that pays more than $600 to an independent contractor in one year is required to report this to the Internal Revenue Service (IRS) as well as to the contractor, using Form 1099-MISC 1 2 This form is merely a report of the money paid; independent contractors do not have income taxes withheld like regular employees.
Workers who believe they have been improperly classified as independent contractors by an employer can use Form 8919, Uncollected Social Security and Medicare Tax on Wages to figure and report the employee’s share of uncollected Social Security and Medicare taxes due on their compensation.
If there is something about a contractor that doesn’t sound right or feel right, if something in the contractor’s behavior while in your home doesn’t feel professional, or if you just don’t trust one of the contractors who provided an estimate, don’t hire that contractor.
You should definitely look at some other houses on your street, neighborhood, or friends in the area and if you like they way it looks, ask them about their experience with the roofing contractor that installed it. Follow up on their recommendations.