Subcontractor vs Independent Contractor

Subcontractor vs Independent contractor is a difference in 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.

Difference Between Subcontractor and Independent Contractor

Independent contractors labor for themselves, but are employed by an employer to do a project or for a specific period of time. These contractors set their own rates and schedules for labor and payment. Typically they are paid through the accounts payable department at a company. This independent contractor then employs subcontractors who are paid and controlled by the contractor but who still performs labor for the employer. Independent contractors labor for themselves, but are employed by an employer to do a project or for a specific period of time. These contractors set their own rates and schedules for labor and payment. Typically they are paid through the accounts payable department at a company. This independent contractor then employs subcontractors who are paid and controlled by the contractor but who still performs labor for the employer. The House of Representatives provides oversight for laws governing these relationships, and details can be found here.

A contractor agreement has the following aspects:

  • This contract will be recorded in written form.
  • The record will outline all pertinent features of the contract.
  • The jobs that are to be finished by the contractor.
  • The time that the contractor has to finish these jobs.
  • The pay that the contractor will receive for his/her labor.
  • Sub-contractors are also independent contractors as they are in business for themselves,
  • A sub-contractor is someone who labors for another contractor.
  • Labor performed by an independent contractor shall be considered a subcontract
  • An independent contractor is a subcontractor, not a regular employee.
  • A contractor is employed to build a home for someone.
  • A contractor then employs different people to perform different aspects of the labor to build the home.
  • The contractor is the one who is actually responsible for seeing that the home is built.
  • A contractor is the one who will be paid by the person who employed him.

A subcontractor labors for another company:

  • A subcontractor is hired as someone who is to provide the original contractor with material or perform services in order to successfully finish a contract.
  • A subcontractor will be subsequently employed by someone (contractor) after that contractor has been employed to perform a job or for a period of time. For example, a builder may employ an electrician to do the electrical labor or employ a plumber to handle plumbing services.
  • A subcontractor contract usually exists between a contractor and a subcontractor.
  • The subcontractor is required to finish certain jobs for the contractor.
  • Subcontractor is a person who accomplishes a part of an existing contract by an original contractor.
  • Subcontractor performs labor for a general contractor, rather than the employer who employed the general contractor.
  • Usually each subcontractor is paid a portion of what the contractor receives for the labor.
  • "Subcontracting" is practiced only by a contractor, namely an individual or a company laboring for another entity under a contractual contract.
  • The most common use of sub-contractors is in the home building business.

The contractor will be responsible for paying the subcontractor and the subcontractor is required to finish certain projects for the contractor.

While the contractor and subcontractor both labor together to finish specified aspects of the job for a company or an individual the contractor is the one compensated by the company. Small business owners may be highly experienced in using subcontractors because subs are a natural part of their industry. In order to move work away from your law firm look here for tips.

Independent contractors labor for themselves, but are employed by an employer to do a project or for a specific period of time. These contractors set their own rates and schedules for labor and payment. Typically they are paid through the accounts payable department at a company. This independent contractor then employs subcontractors who are paid and controlled by the contractor but who still performs labor for the employer. It’s important that an employer has a handbook that reflects this.

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