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In this instance the main contractor did not charge GST and the subcontractor did. The main contractor got a bit of a shock when the subbieâs invoice came with the agreed upon hourly rate but then added 10% for GST.I guess the lesson here is ânever assumeâ.n this instance the main contractor did not charge GST and the subcontractor did. The main contractor got a bit of a shock when the subbieâs invoice came with the agreed upon hourly rate but then added 10% for GST.
Youissue a Form W-2 to an employee. A subcontractor is a worker who is not your employee. You give a Form1099 to a subcontractor showing the amounts you paid him. The subcontractor is responsible for keeping hisor her own records and paying his or her own income and self-employment taxes.ouissue a Form W-2 to an employee. A subcontractor is a worker who is not your employee. You give a Form1099 to a subcontractor showing the amounts you paid him. The subcontractor is responsible for keeping hisor her own records and paying his or her own income and self-employment taxes.