A lot of people starting in this industry regularly confuse being an employee of a contractor with being a contractor.
The first of which btw is with out a doubt the most common scenario, especially when your talking installs.
Its actually very simple to determine whether you are defined as an employee or an actual subcontractor.
Just look at how you are being paid.
An employee (dose not have to submit an invoice for his regular paycheck) and will have Federal, State and local taxes as well as unemployment insurance and Social Security being taken out of every paycheck.
Additionally an employee will get a W2 at the end of the year and typically has never had to sign any kind of contract or subcontract agreement with his employer.
An actual subcontractor (dose have to submit an invoice before he gets paid) and will usually have only a 10% retainage (to ensure work quality) that will be taken out of each check, no other kind of taxes or UI of any kind will be with-held.
Additionally a subcontractor will get a 1099 at the end of the year and has had to sign a contract or subcontract agreement with the contractor that he is working through.
There are of course other particulars that legally differentiate between the two classifications, but these are perhaps the most obvious and easiest to define.
:)
Re: sub contractor or employee you tell me?
Member #: 4167
Registered: 1996-2001
Posted:
43
Name:
K. Carroll
Name:
K. Carroll
Company:
MHD Communications
Occupation:
Fiber Department Supervisor
Location:
Tampa, Florida
Personal:
Experience:
~45 years
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