getting a retainer back

ndncreek · 09-04-2011, 12:32 PM

i havnt done work for this company in 3 years and they have about 2000 retainage they take out each week so when u stop working for them they use it for callbacks.well i had none and they gave me the paper saying how much it was what can i do? i live in maryland thx

rusty baker · 09-04-2011, 01:17 PM

You probably will have to call an attorney. I was told by one attorney that they are illegal here. Too many never give the money back. In some states they also owe you interest on the money. Don't be surprised if they phoney-up some complaints to try to keep the money, that's very common.

Bud Cline · 09-04-2011, 01:22 PM

Retainage is for a predetermined amount of time when it is withheld for each event. When the predetermined amount of time expires...send them an invoice for the related amount of retainage withheld. If the time has expired on all of the withholdings then invoice the entire amount specifying/listing each amount separately.

ndncreek · 09-04-2011, 07:33 PM

Quote:

Originally Posted by rusty baker

You probably will have to call an attorney. I was told by one attorney that they are illegal here. Too many never give the money back. In some states they also owe you interest on the money. Don't be surprised if they phoney-up some complaints to try to keep the money, that's very common.

thanks for the reply yea they done kinda messed up and said they didnt have any call backs and they said i have to give them a letter stating i dony do work for them any more and then they will give me the 2000 in 90 days lol so i will have to get a lawyer any suggestions appreciated im just a rugrat trying to pay the bills in maryland

Bud Cline · 09-04-2011, 07:53 PM

OIC...you're a rug-rat installing for a store or a shop and they have been withholding a sum from each job. I don't think that is a legal retainage in that case. In fact that isn't "retainage" in the normal legal-sense of retainage. That is what is known as a "set-off". In some states that type of withholding is not legal, don't know about Maryland.

So I'll bet they also didn't withhold taxes and they called you a subcontractor and would send you a 10-99 each year when in fact they controlled your every move while you worked for them and in reality you were an employee. This assumes you filed a return and paid taxes annually.

ndncreek · 09-04-2011, 08:26 PM

Quote:

Originally Posted by Bud Cline

OIC...you're a rug-rat installing for a store or a shop and they have been withholding a sum from each job. I don't think that is a legal retainage in that case. In fact that isn't "retainage" in the normal legal-sense of retainage. That is what is known as a "set-off". In some states that type of withholding is not legal, don't know about Maryland.

So I'll bet they also didn't withhold taxes and they called you a subcontractor and would send you a 10-99 each year when in fact they controlled your every move while you worked for them and in reality you were an employee. This assumes you filed a return and paid taxes annually.

that is correct they did 1099 me and i did my taxes and it might even b 5 years since i did a job for them

rusty baker · 09-04-2011, 08:33 PM

I would tell them that you are consultng an attorney. Offer to give up the interest if they pay immediately. You might hint that the IRS would be interested in how they run their operation. Most of these places know that they are violating the law and just figure no one will ever call them on it.
http://www.irs.gov/businesses/small/...=99921,00.html

ndncreek · 09-04-2011, 09:09 PM

Quote:

Originally Posted by rusty baker

I would tell them that you are consultng an attorney. Offer to give up the interest if they pay immediately. You might hint that the IRS would be interested in how they run their operation. Most of these places know that they are violating the law and just figure no one will ever call them on it.
http://www.irs.gov/businesses/small/...=99921,00.html

im goin to do that on tues but they rnt budging now but its my money