With regards to a smoothie company.
2006-11-26 01:10:19 · 3 answers · asked by GG 1 in Business & Finance ➔ Small Business
Given youre the owner of the company. advantages includes a subcontractor can be called in when necessary rather than having them working for you permanently. You dont have to worry about pension, national insurance, holiday pay etc. disadvantages - subcontractprs may be hard to find in the area you want, they charge per hour, are not under your control
2006-11-26 01:18:29 · answer #1 · answered by shano 2006 1 · 0⤊ 0⤋
You should read carefully the definitions of 'employee' and 'subcontractor' by the IRS. http://www.irs.gov
An employee is subject to payroll taxes, a subcontractor is not but must file their own taxes.
An employee is entitled to unemployment insurance when laid off, a subcontractor is not.
As a subcontractor, you are considered self employed and can write off expenses related to your work.
As a subcontractor, you are not subject to withholding and may pay a lot less taxes at the end of the year (after your legal deductions) than you would as an employee. However, you must check with IRS about quarterly tax payments. Your best bet to find out the legal differences and implications is to go to irs.gov and read for yourself.
2006-11-26 11:01:18 · answer #2 · answered by flywho 5 · 0⤊ 0⤋
Advantage is you are not held legally responsible for the lawsuits. The disadvantage is you don't make the big bucks.
2006-11-26 09:38:59 · answer #3 · answered by nursie poo 2 · 0⤊ 0⤋