Hi there,
Working with contractors can be a rewarding and challenging experience. As a small business owner, it's important that you're classifying your workers correctly. I'd be happy to point you in the right direction for help with this.
Take a look at this helpful article I found pertaining to the difference between Subcontractors and Contractors: Subcontractor vs. Contractor - Understanding the Difference.
As explained in this article, "a contractor is a person or a company that seeks to do business by obtaining contracts and carrying them out. Being a contractor is similar to being a business owner – you negotiate your deals, work for yourself, have your clientele and are rewarded on your own merits."
Further, "a subcontractor is a type of contractor. Subcontractors also work on a contractual basis, and they also offer a particular set of skills which they perform for customers. The key point about subcontractors is that they form agreements with the contractor, not with the customer."
Here's a few articles you can review regarding contractors in QuickBooks Online:
I hope this helps you better understand the difference between the two. If you have any other questions, please feel free to reach out to our tech support team. We'd be more than happy to help you set up your contractors in the system if you need a hand.
Take care.
