As a sole Trader how would I pay a Sub-Contractor if I got one to help me do some work? I am a House Painter?
Asked by kellyloader
Sorry, I will be more specific. I don't want to use cheques. I would want to pay them via the internet, but I am unsure as to how I would do it. Can I do it in BPay, just as a transfer of money and use their invoice number as a reference, or do I need some kind of biller code to do it that way or what?

Best Answer:
You would pay him an hourly rate which you can both agree upon prior...put it in writing if you want. The pay would obviously depend upon his experience. Have him file as an independent contractor so you don't have to worry about paying his FICA, etc. Just cut him a check everyother week. If you have questions concerning taxes (just to be safe) ask your CPA.

You need to have proof of identity and citizenship/right to work in the US. Ask the sub-contractor for a copy of their driver's license and Social Security card. Get the sub to complete a consultant's tax form and file it with your accountant. At the end of the calender year or fiscal year have your accountant to provide the sub with a 1099.
Answered by hhabilis