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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.

Why do companies hire subcontractors?

Ultimately, subcontracting lets you focus on whats most important to you: your business. By hiring professionals to handle the tasks you are less good at, you can use your time and energy more strategically. You will have less to manage because your project will be coordinated by professionals who know their job.

What does being a subcontractor mean?

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 is an example of a subcontractor?

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.

Whats the difference between an independent contractor and a subcontractor?

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.

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