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What are the different types 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.

What makes a company a subcontractor?

A subcontractor (or sub-contractor) is a company or person whom a general contractor, prime contractor or main contractor hires to perform a specific task as part of an overall project and normally pays for services provided to the project.

What classifies someone 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 does it mean to be hired as a subcontractor?

Instead of a fixed cost like an employee, a subcontractor is a variable cost. With a seasonal subcontractor, you dont have to worry about meeting payroll when theres no work coming in. For the subcontractor, the main benefit would be the potential for tax deductions that are not available to employees.

What industries use subcontractors?

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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