My husband has the opportunity to accept a job opportunity as a sub contractor, how does that work?

Question

Will he be rquired to be liscensed in the state of Florida, or register as a sub contractor. I am not sure how this works.

Answer 1

Florida has the most stringent requirements for contracting. He has to be licensed and that requires state exams and money.

Also, as a sub, he assumes a greater risk in not being paid for the work. He will be asked to sign a contract as a sub and hidden in the legal jargon will be allowances for the contractor to deduct money from his invoice as well as reasons he may never be paid if the contractor or owner have a dispute.

Lots of things you really need to look into PRIOR to signing on the line as a sub.

Check the contractor, project engineering firm and owner first, then get on the phone and google Florida contractors license, and read very carefully the contract before you sign it.

Answer 2

I did a lot of both general contracting and sub-contracting in the building trades.
Here's how either works. The general contractor writes up a contract , lets say to build a house, with the fyture home owner. The general contract will cover everything to bring the house to completion.
Often, the general contractor will have no builders on his payroll, instead he will contract with a masonary crew to do the foundation. A carpenter crew to do the framing, sheething, and finishing. Same with the plumbing, electrical, painting, etc.
All of those are sub-contractors. Each does an agreed-on tack for a certain amount of money. They are actually writing contracts from the general contractor. They do not work for hourly wage. If the mason sub-contractor takes too much time, or his men don't accomplish as much as he figured, the loss is his. He must do the agreed on work for the agreed on price.
Both general and sub-contracting have pros and cons. I can't advise on Florida laws. That was not my State.

Answer 3

He should be careful here. A lot of employers will hire workers, telling them they are sub-contractors, to keep from paying workers compensation, unemployment insurance, and other taxes. To be a sub-contractor, you must have your own tools, be master of your own time, have a local license, permits, etc. This is especially bad in the construction business. Sometimes it is just a way for an employer to get cheap labor, without paying the benefits. Just be careful, make sure you know what you are doing.

Answer 4

Here in Florida a lot of people get paid as subcontractor, the reason: the employer does not withheld money for taxes purposes (Federal withholding, social security 6.2% and medicare 1.45%) and does not have pay taxes on that person, remember that the employer pays exactly the same amount of SS and Medicare withheld to a person + his contribution a total of 15.30% of taxes + Federal withholding. Additional they do not contribute to the state unemployment tax SUTA and federal unemployment tax FUTA.
At the end of the year the employee has to pay 15.30% FICA + taxes to uncle Sam.

Hope this help you

Answer 5

Generally a subcontractor is licensed and has business insurance. The laws covering subcontracting in Florida are online at http://www.dsireusa.org/documents/Incentives/FL02R.htm.

I would speak with my attorney on this matter before accepting and signing a contract, so that you will understand all the legal ramifications.

Answer 6

It depends on what he is doing. He may have to register.

A subcontractor is running his own business. He would be responsible for paying his own taxes on a quarterly or monthly basis (depending on how frequently he is paid and how much he is paid). So if he does that, make sure that he consults a legal professional about complying with all the laws of the State of Florida concerning starting your own business.

Answer 7

Naw, he just does the work. Then the General Contractor doesn't pay him and skips town with the money. That's subcontracting.