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Subcontractor vs Independent Contractor: Everything You Need to Know
Subcontractor vs Independent contractor is a difference in employment relationship with a laborer. 3 min read
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.