Who is considered a "subcontractor" for taxes?

Answer by  leah49 (8)

For tax purposes, a subcontractor is someone who is hired perform part of another's work. For example, you were hired to paint a house and then hired others to help you. The people who hired you pay you and you pay your subcontractors. Yes, there is paperwork to fill out. Check the IRS website for information on the paperwork.

Answer by  myanna (104)

Yes, there is paperwork that needs to be filled out. Subcontractors receive a 1099 form from the company or individual they contract with, instead of a typical w-2.

Answer by  bitchstewie (489)

A subcontractor is a professional or craftsman that you hired for your business. I believe he has to fill out a Form 1099 to show that he is a tax payer.

Answer by  LeheckaG (1826)

Individuals working for an-organization are either employees or subcontractors; employers control employees'-actions, subcontractors are supposed-to-be independents. Employers complete IRS Form 1099-MISC Miscellaneous Income and mail copies to subcontractors & IRS by February 28th. Subcontractors report IRS Form 1099-MISC Miscellaneous Income as "self-employment"-income, and pay "self-employment" & income-taxes.