Think Twice Before Hiring Any Service Contractor To Do Work At Your Home

What exactly is a House Cleaning Referral Agency?

Referral agencies are just as the name implies. They are agencies that refer “Independent Contractors” to customers for different services. One of the most popular services for referral agencies is House Cleaning. Referral agencies are contacted by customers looking for house cleaners. Referral agencies are basically the middle man. They will find you individual cleaners to clean your home.

Referral agencies are NOT the actual employers of these individuals. Referral agencies cannot direct, train or control these individual’s work in any way. Referral agencies also don’t pay employment taxes on these individuals. Customer’s MAY be liable for paying employment taxes if they pay wages over certain tax thresholds while the individual works within their home. Referral agencies are also NOT responsible for paying worker’s compensation, liability insurance or bonding.

By not paying taxes or insurance; referral agencies can typically under price employer based cleaning companies. Several consumers think this is excellent. They can save money. Everybody wants a bargain right? Well, let’s take a closer look. A few individuals that agree to work for referral agencies have never had any former cleaning training. They may not have individual insurance or liability insurance. What happens if they get hurt in your home? Is the referral agency going to pay? NO! What happens if the individual breaks your tiffany lamp and the individual does not have insurance? Who pays, the “independent contractor? Good luck trying to collect that debt. Let’s go back to the referral agency. Are they going to pay for your lamp? No way! Remember, they only “referred” an individual to you! They will tell you they have no liability.

Often enough the difference between a referral agency and an employer based company is in quality, dependability, professionalism and liability. You may pay a little more for these qualities, but you will sleep well knowing you are using a licensed, bonded and comprehensively insured and professional company.

Referral agencies legally must disclose the fact that they are referral agencies. They must disclose this fact, both verbally and in writing. They must also let the customer know that they may be liable for payment of employment taxes including unemployment insurance and social security for this “Independent Contractor”.

Other problems usually encountered with referral agencies, is the situation where the customer is unhappy with the cleaning the “independent contractor” performs. Since the referral agency cannot legally train or direct the work of the “Independent Contractor” – the referral agencies only solution is to send another “Independent Contractor.” This is the cycle a customer routinely falls into when using referral agencies.

Employer based companies most often put their employees through a thorough training program. The employee then works alongside experienced workers to gain more expertise on all aspects of cleaning. When you hire a person from a referral agency you have no idea if they have had any training. Remember, the agency is NOT allowed to train, direct or control these individuals. If they do in anyway, they become employers and are responsible for paying all the taxes mentioned above.

The next time you call for an estimate on cleaning you may want to ask if t