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If you decide to start your own subcontracting business, you’ll be able to reap many of the most significant benefits of working as a general contractor — like greater flexibility in job hours and scheduling. You’ll be responsible for paying your own taxes and for keeping track of your income and expenses.
The bottom line is: Subcontracting work will be very difficult to secure if you carry no insurance or policies with inadequate coverages. . Workers compensation insurance. It helps your workers replace income if they are injured on the job. Such an occurrence could threaten the existence of your contracting business.
In this respect, general liability insurance or workers’ compensation could help cover those costs if an incident should occur. . Each field of subcontracting work has its own area of focus in insurance matters. Workers’ compensation insurance should be in place to help defray the costs of employee medical treatments.
Knowing the implications of when and how to accrue income and expenses across multi-year projects is an art in itself. . Overhead costs can fluctuate month to month based on workers’ compensation, subcontractors, insurance, training, and more. Don’t forget to include insurance, worker’s compensation, and taxes into the figure.
Department of Defense, Defense Logistics Agency, providing specialized assistance to businesses seeking assistance with contracting and subcontracting opportunities with the Department of Defense, other federal agencies or state and local governments. A minimum of 60% of the jobs created must be filled by low and moderate income persons.
Income Tax Capital Credit: The Income Tax Capital Credit has been available since 1995. The enterprise zone credit is equal to $2500 per permanent new employee and can be applied against the income tax and/or business privilege tax liability. The tax for existing entities accrues as of Jan. The rates range from $.25
INCOME TAX CAPITAL CREDIT: Currently codified as Article 7, Chapter 18, Title 40, Code of Alabama 1975. It is a credit of five percent of the capital costs of a qualifying project, to be applied to the Alabama income tax liability or financial institution excise tax generated by the project income, each year for 20 years.
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