In other words, if the client is billed $3000, how much of that should the subcontractor receive? I’ve subcontracted under a few folks - one payed me 50% and the other 40% of what the client was billed. I’m ready to have a few subcontractors under me now and want to pay them fairly while still making a profit.
What's the standard percentage paid to a subcontractor (doing consultant work) in relation to what the client is billed?
Usually you don't want to have your payroll be more than 20% to 30% of what your gross is
Craig W. Smalley, E.A.
Admitted To Practice Before The Internal Revenue Service
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