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What does a sub contractor need to know?

A subcontractor is someone who sets their own hours and chooses the work they want to do. They get paid by the contractor for their services, and have to pay their own taxes, provide their own tools and supplies, and do not generally receive health insurance, benefits, or vacation time from an employer.

What qualifies you as a subcontractor?

A subcontractor is a worker who is not your employee. You give a Form 1099 to a subcontractor showing the amounts you paid him. The subcontractor is responsible for keeping his or her own records and paying his or her own income and self-employment taxes.

What is the difference between a contract and a subcontract?

Typically, a contractor works under a contractual agreement to provide services, labor or materials to complete a project. Subcontractors are businesses or individuals that carry out work for a contractor as part of the larger contracted project.

What is the purpose of a subcontract?

Subcontracting refers to the practice of bringing in an outside company or individual to perform specific parts of a contract or project. In most cases, a company subcontracts another business to perform a task that cannot be handled internally.

What are examples of subcontractors?

Different types of subcontractors Excavation. Before a project can start, some general contractors will hire an excavation sub to prepare the site for building. Concrete. Framing. Roofing, siding, and sheet metal work. Plumbing. HVAC. Electrical. Carpentry.

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