IRS and Department of Labor are Cracking Down!

Heads up! 

The IRS and the US Department of Labor are embarking on an enforcement effort to crackdown on “misclassification of employees”. 

This practice (too common in the construction industry) consists of the use of “1099 – Independent Contractor” status to pay workers when they do not meet the test for that status.  The rules for determining who is an employee vs. who is an independent contractor can be vague – but just because you want to pay your work crew without paying employment taxes or going to the hassle of withholding/paying their share is not one of the tests. 

Visit the IRS Website to read information about classification of employees.

To decrease the pain of making the transition the IRS has announced a program that offers substantial reduction in penalties IF YOU ARE NOT ALREADY BEING AUDITED.

Industry Bulletin | Single Project Limit Increase Takes Effect

This bulletin just arrived in our inbox from the Nevada State Contractors Board, and we wanted to spread the word.

Please read and share with our friends in the industry!


"Assembly Bill 32, which revised the provisions governing the process for a single project limit increase takes effect October 1, 2011.

Specifically, AB 32 amends NRS 624.220 to read that a request received by the Board from a licensed contractor to increase the monetary limit of his or her license for a single construction project must be submitted to the Board at least 5 working days before the date on which the licensed contractor intends to submit a bid for the project and must be approved by the Board before the submission of a bid by the contractor for the project. The previous process allowed a contractor to submit a request at least 2 working days before the date on which the licensed contractor intended to submit a bid for a project.

The Nevada State Contractors Board will begin adhering to this statutory change effective October 1, 2011. NSCB will continue to keep industry groups informed as the policy is finalized.

Should you have any questions, please contact either of our main offices for more information:

Las Vegas/Henderson                               Reno
2310 Corporate Circle, Suite 200             9670 Gateway Drive, Suite 100
Henderson, NV 89074                               Reno, NV 89521
(702) 486-1100                                           (775) 688-1141


We hope you find this information useful, and would welcome you to begin following us on our social media sites listed below, where additional information concerning the Board, industry news, and industry-related events will be posted regularly.

Thank you very much for your continued interest in the Nevada State Contractors Board!  We look forward to better serving you!"

Multi-Jurisdictional License for Reno, Sparks and Washoe County

By - Jess Traver

I recently received a note from Bob Webb, Planning Manager for the Washoe County Department of Community Development, advising me about the implementation of a multi-jurisdictional license for the three jurisdictions – Reno, Sparks and Washoe County.

The license would allow a business operator (e.g., a builder or a contractor) who performs business within two or three of the jurisdictions to obtain his/her initial license at one location; essentially, a one-stop-shop for obtaining a license.


The operator would go to the jurisdiction wherein the business office is located, submit the normal license application, and the jurisdiction will collect license fees for all three jurisdictions at that time and review/inspect the license as normal.  Once the license is approved, that jurisdiction will notify the other two jurisdictions, who will then issue their license. The process will create one primary point of contact, making the process that much more efficient.


The renewal process remains the same; however, the hope is that one single application will be of benefit to business operators who need licenses to operate within Reno, Sparks and/or the County.


The County is sharing the process with the building community and seeking feedback from business owners. You can join the process on Friday, October 7 from 9:00am to 10:00am at the Washoe County Complex on E. 9^th Street, Building A.


I hope you can join us!

Midyear Construction Review

Home sales statistics around the country continue to point to a slow recovery of the economy. History will show that after a sharp dive, it takes time, even years – for the market to turn around.

Is that true today in Northern Nevada? What does the future hold for Nevada’s housing industry?

Yesterday, the Builders Association of Northern Nevada (BANN) hosted the Midyear Construction Review. Mark Krueger, Senior Vice President of Land Division at Grubb & Ellis|NCG, discussed existing conditions and future trends in the residential market, and also provided an update on home sales and recent land purchases in the area. 

“Market conditions remain very challenging but with land prices at 25 year lows, builders and investors are finding opportunities that make sense.”

If you missed Krueger's presentation, you can download it here. 

The Review also featured a presentation from Brian Bonnenfant, Project Manager, Center for Regional Studies at UNR. Bonnenfant addressed Nevada's most recent unemployment figures and pointed to a growing population in Washoe County. To download Bonnenfant's presentation, click here. 

Bob Nielsen, Chairman of NAHB, also addressed the pent-up demand for new homes that will in turn drive the housing market, as well as the actions needed in Congress to create an upward movement in the housing industry. 

Finally, we've included video of the local media coverage from KTVN Channel 2.. 

We will post articles from KRNV News 4, the Reno Gazette Journal and the Northern Nevada Business Weekly as they are made available. 

If you have any questions, please feel free to call the Builders at 775.329.4611.

OSHA Fall Protection Requirements Clarified

Many contractors in Nevada have been recently perplexed after the federal OSHA granted a three-month phase-in period to allow residential construction companies additional time to comply with its new directive (STD 03-11-002).  This directive does not apply to residential construction in Nevada.  There is no change to the way residential construction companies do business in Nevada relative to fall protection requirements.

The State of Nevada, under an agreement with OSHA, administers the federal OSHA occupational safety and health program regulations within the state and enforces standards contained within 29 CFR, Part 1926 (construction).  The state did not, however, adopt the federal interim fall protection standard enacted by federal OSHA in 1995.  Essentially, that interim standard allowed a contractor to use alternative fall protection and work procedures without showing infeasibility or greater hazard and without a written fall protection plan.

Nevada residential construction workers in areas six feet or more above lower levels must be protected by conventional fall protection (in other words, guardrail systems, safety net systems, or personal fall arrest systems) in accordance with 29 CFR 1926.501(b)(13).  If an employer can demonstrate that the fall protection required under 1926.501(b)(13) is infeasible or presents a greater hazard, it must instead implement a written, site-specific fall protection plan meeting the requirements of 1926.502(k) and obtain Nevada OSHA approval of the plan (consistent with requirements of STD 03-11-002 effective June 16.)

Remember -- the three-month phase-in period in the federal OSHA directive does not apply to the Nevada OSHA program.  Contractors in Nevada will continue to operate as we have in the past.

-Jess Traver, BANN Director of Government Affairs