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If a contractor hires a subcontractor (including them in the contract) for a job, what are the contractor's tax obligations? If I understand it correctly, all that the contractor has to do is write the subcontractor's pay off as an expense and send them a 1099 form at the end of the year. Thank you! |
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Unless the subcontractor ends up being classified as your employee by the IRS, that is.... You should have a tax adviser to go with you on the details of the activity. But generally speaking - yes, you're right. Just be aware that there might be some pitfalls you'd want to avoid. |
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