How long can a payroll manager hold a paycheck for an independent contractor (1099)? The payroll manager sends paychecks up to 30-45 days late. For example: Pay period ends on January 1, paycheck will be paid out around February 15-22nd. They always have excuses on why the checks cannot be sent out on time. There are several 1099 employees experiencing this same problem. Is there any legal help we can use for assistance in having this payroll manager speed up his payouts?
Thank You,

Tom

Hello Tom:

If you're a 1099 person, you're not an employee and these aren't paychecks... You're a vendor of services to this company just like the guy who sells them toilet paper. They pay their bills when they get around to it. You could certainly tell them that you're not going to work for them. But, no, there's really nothing you can do. These are simply bad business practices. Not illegal ones.

excon

Yes, you misunderstand this completely as excon said,

1. first you are not an employee, you are a independent contractor, you have your own business

2. this is not a pay check it is a payment for a bill you would give them, they may have a informal method for you to bill them, but it is merely a debt for services

Not really any different than them calling a plumber to come over and do work and send them a bill.

3. They can merely pay you when they want, some companies pay every week, some every month, and some companies are slow paying,
For example some companies I sell items too take 2, 3 or more months to pay their bills. When I used to bill medicare for work, it would take sometimes up to 5 or 6 months to get paid.

4. You need to be sure in your contract with this company that there is a clause that allows you to charge interest on payments over 30 days.