When is a subcontractor an employee or a contractor?
But if your subcontractor only works on your projects and is economically dependent on you, he is most likely a misclassified employee. The final factors that determine an employee vs contractor classification have to do with the relationship between you and your worker.
What are the pros and cons of subcontracting?
There are downsides to taking on subcontracting work, and you’ll need to weigh the pros and cons depending on your situation. As a subcontractor, you might have to work at a lower rate than what you typically charge. Plus, if you’re not credited for your work, you may not be able to include the project in your portfolio.
Can a current employee also be an independent contractor?
When you wish to contract with a current employee, it is important to look at the nature of the work the employee will perform as an “independent contractor.” If the work is similar to that which he or she performs as an employee, it is unlikely that a true independent contractor relationship is formed.
Which is the best definition of sub-contracting?
What is sub-contracting? A sub-contractor is a party which agrees to perform part or all of the obligations of another party (main contractor) under a separate contract (master contract) with the ultimate employer (employer). The sub-contractor will usually be engaged by a main contractor to perform a specific task as part of the master contract.
But if your subcontractor only works on your projects and is economically dependent on you, he is most likely a misclassified employee. The final factors that determine an employee vs contractor classification have to do with the relationship between you and your worker.
Can a subcontractor be covered by workers’comp?
This subcontractor works for the company every week, all year long, and doesn’t do any work for other companies. This person could possibly be considered an employee and would be covered by the drywall company’s workers’ compensation policy. Alternatively, let’s say that same drywall company has a project that requires electrical work.
There are downsides to taking on subcontracting work, and you’ll need to weigh the pros and cons depending on your situation. As a subcontractor, you might have to work at a lower rate than what you typically charge. Plus, if you’re not credited for your work, you may not be able to include the project in your portfolio.
What are the rights of a self employed subcontractor?
Self-employed people have very few automatic workplace rights, beyond the issues discussed below. However, it is commonplace for a self-employed subcontractor to establish terms such as working hours and the scope of the project they have been engaged to complete, in a written contract with their client or customer.