YOUR GUIDE TO BECOMING A SUBBIE
SO YOU WANT TO BECOME A ‘SUBBIE’ AKA SUBCONTRACTOR
IT’S NOT EASY – OTHERWISE EVERYONE WOULD DO IT. There’s a lot involved in running your own operation, and a very real risk that you’ll go broke. However, the payoff could be huge and well out-weigh the risk.
WHAT IS A SUBCONTRACTOR? A subcontractor is hired to do a particular piece of work for somebody else. They range from one-man operations to firms with hundreds of employees. A contractor has specific abilities and tools and can complete the job far more efficiently than the main contractor.
REMUNERATION AND CONDITIONS As a regular employee, you’re paid a standard wage or salary that is agreed upon when you commence employment. A subcontractor sets their own rates. You work out the requirements, the costs associated, a contingency and then put a bundle of profit on top.
DIFFERENCES BETWEEN A SUBBIE AND AN EMPLOYEE
EMPLOYEES
SUBBIES
BOSS CONTROLS HOW
SUBBIE DOES WORK
WORK IS PERFORMED.
THEIR OWN WAY.
A PART OF THE BUSINESS, USUALLY WORK IN A REGULAR, ONGOING BASIS.
STAND-ALONE AS THEIR OWN BUSINESS, CAN WORK FOR MULTIPLE BUSINESSES AT THE SAME TIME.
PAID UNDER AN EMPLOYMENT CONTRACT.
ISSUE AN INVOICE IN ORDER TO BE PAID.
BOSS SUPPLIES EQUIPMENT AND MATERIALS.
SUBBIE SUPPLIES OWN EQUIPMENT AND MATERIALS.
BOSS HANDLES TAX, SUPER AND WORKERS’ COMP.
SUBBIE HANDLES OWN TAX AND SUPER.
REPRESENTS THE BOSS’S
REPRESENTS THEMSELVES
BUSINESS.
OR OWN BUSINESS.
A CONTRACTOR DECIDES HOW TO DO THE JOB; AN EMPLOYEE IS TOLD HOW TO DO THE JOB.