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Subcontracting versus direct hiring in the construction industry

Regardless of the field in which a company operates, owners in New York and elsewhere may encounter a variety of vital decisions while seeking to safeguard the longevity of their endeavors. For construction company owners, one such decision could involve choosing whether to hire employees directly or to use subcontractors. Knowing the possible advantages and disadvantages of each option could help place a person in a better position to make decisions based on what is best for the future of the company.

There may be a variety of differences between choosing to use subcontractors or to hire employees directly. With employees, company owners may be responsible for deducting taxes from paychecks and providing the necessary supplies and equipment for the job at hand. Alternatively, subcontractors may be responsible for their own taxes and for bringing their own equipment.

With employees, company owners may also have greater control over the work hours and schedules, and they may also be able to set their own terms as to employee wages. Subcontractors may be responsible for making their own schedules and setting forth terms as to wages they deem acceptable. There may also be differences as to available worker benefits and expected lengths of employment between the two categories.

Understanding the differences between construction company employees and subcontractors could be essential to making decisions about the correct path to take. With a variety of topics to address, those who wish to seek insight in choosing the best available path could find it beneficial to consult with an attorney for advice. In doing so, a person in New York could become better prepared to make informed decisions about the direction of the company and on how to protect his or her interests in the process.