Complete Legal Pennsylvania Subcontractors Forms For Free

Anyone who is a sole proprietor, business owner or is self-employed has to pay Pennsylvania self employment tax, which is actually a Social Security and Medicare tax. The Pennsylvania self employment tax provides 12.4% to Social Security and 2.9% to Medicare, for a total of 15.3%.

In the case of a subcontractor, payment is due to the sub fourteen (14) days after the contractor's receipt of each progress or final payment or fourteen (14) days after receiving the subcontractor's invoice, whichever is later.

PA requires that an independent contractor provide services that are not unique to the employer's business, sets his or her own work hours, offers his or her services to the public at large, and is employed under a contract.

Once you determine that you meet the minimum requirements, you can apply for a city license . All contractors need a license and must register with the Pennsylvania State Attorney General's Office if you're earning or expect to earn over $5,000 from your work.

Make sure to include any terms or conditions that are specific to the subcontract agreement. Consider the scope of the work, timeline for completion, and any performance criteria to include in the agreement. Ask both parties to sign and date the agreement so that each is legally bound to the terms and conditions.

Pennsylvania does not have a state license to work as a handyman. However, if you do more than $5,000 worth of 'home improvement' work per year, you must register with the Attorney General's Office. Once registered, you will get a certificate and an official Pennsylvania Home Improvement Contractor number.