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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.
Examples of Subcontractors Subcontractors are individuals with special skills. In construction projects, contractors will hire subcontractors who specialize in different aspects of the project, such as plumbing, electricity, painting, etc.
Becoming an independent contractor is one of the many ways to be classified as self-employed. By definition, an independent contractor provides work or services on a contractual basis, whereas, self-employment is simply the act of earning money without operating within an employee-employer relationship.
Subcontractors report to the contractor, who is ultimately responsible to the client for their work. Therefore, the subcontractor is liable to the contractor, but not directly to the client.
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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Subcontractor vs Independent contractor is a difference in an employment relationship with a laborer. Independent contractors are employed and paid directly by the employer while subcontractors are employed by an independent contractor and are paid by them.
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.
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.
Where independent contractors are usually jacks-of-all-trades, subcontractors most often specialize in a specific aspect of a project. Rather than being directly hired by the client, theyre called in by independent contractors to perform certain tasks, such as roofing and siding, electric work, plumbing, or tiling.
Building and Construction. One industry that relies heavily on subcontractors is construction, according to Explore Insiders. Food and Beverage Service. Marketing and Communications. Technology Industry. Administrative Services.

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