The subcontractor is also responsible for the payment of all IRS taxes by paying taxes for the self-employed. The contractor who cooperates with the subcontractor is not responsible for the subcontractor`s taxes, the continuation of income or the provision of insurance to the subcontractor. When a contractor, company or individual needs support or skills from someone who can help them complete a project, they can deliver the work to a subcontractor to complete it. A contractor may include in its written agreement specific details about the terms of payment, for example. B a flat-rate fee, an hourly rate, a withholding or a fee for late payments. The subcontractor model facilitates the development of legal documents. .