How to Pay Subcontractor Technicians: Splits and Settlements

If you're figuring out how to pay subcontractor technicians, a common setup in field service is a percentage split of each job: take parts and certain fees off the top, split what's left, and settle up once a week on a written statement that shows who collected what. The split itself varies from company to company. What matters more is that the math is written down, the same for every job, and easy for the tech to check.

This guide walks through the pieces: the split, parts, card fees, tips, who holds the money, and the weekly statement. It's about common practices, not one "right" number.

What percentage do subcontractors make?

There's no single standard, and you should be careful with anyone who quotes you an industry average without a source. Splits depend on what each side brings:

• Who brings the customer. If you generate the leads and book the jobs, that's a big part of the value.
• Who supplies the parts and tools. A sub with their own truck, tools and parts stock carries more cost.
• Who handles the customer. Booking, billing, collections and callbacks are real work.
• The trade and the ticket size. A small service call and a big install often get handled differently.

Some owners use a flat percentage on everything. Some use different rates by job type. Some pay a flat rate per job, or hourly for certain work. A 50/50 split after parts is one setup you'll see, because it's simple to explain and easy to check. But pick what fits your costs, and put it in writing before the first job.

The parts question: off the top

Parts are where a lot of pay arguments start. A common way to handle them is off the top: the cost of parts comes out of the job total before the split, and whoever paid for the parts gets reimbursed.

Why? If you split the full ticket, the person who bought the parts eats half the cost. That punishes whoever stocked the truck.

Decide and write down:

• Who buys parts, the tech or the company?
• What counts as the cost: the receipt price, or a set price from your price book?
• Does the tech need to send a receipt or photo before it's reimbursed?

Card processing fees

When a customer pays by card, the processor keeps a fee. Someone has to absorb it. The usual options:

1. Off the top, like parts. Both sides share the cost through the split.
2. Company absorbs it. Simpler for the tech, costs you more.
3. Charged to the side that chose card. Rare, and usually messier than it's worth.

Off the top is a common way to keep it fair. Cash and check jobs have no processing fee, so they don't get this deduction.

Tips

Tips are a judgment call, but many owners let the tech keep the full tip. Splitting a tip the customer meant for the person in their house is a fast way to lose a good sub.

If the tip comes in on a card, decide whether the processing fee on the tip comes out first. Put it in writing either way.

Who collected the money

This is the part that trips people up. On some jobs the office collects payment (a card online, a check mailed in). On others, the tech collects cash or a check on site. The split is the same either way. What changes is who owes whom.

Example: the office collected

A $1,000 job, $200 in parts the tech bought, paid by card. Say your processor's fee on this job comes to $30.

• Job total: $1,000
• Less parts: $200
• Less card fee: $30
• Left to split: $770
• Tech's 50%: $385
• Plus parts reimbursed: $200
• Company owes the tech: $585

Example: the tech collected cash

Same job, but the customer paid the tech $1,000 cash. No card fee.

• Job total: $1,000
• Less parts: $200
• Left to split: $800
• Tech's 50%: $400
• Plus parts reimbursed: $200
• Tech's total share: $600
• Tech is holding: $1,000
• Tech owes the company: $400

These numbers are just an example. Use your own split and fees.

Run a balance each way

Over a week, a tech might have some jobs where you owe them and some where they owe you. Don't settle each job on its own. Run one balance: add up what you owe, subtract what they owe, and settle the difference. If the tech is holding more than they're owed, the balance carries to next week or they pay it in.

The weekly settlement statement

Settle on the same day every week. Send each tech a statement that shows every job, so there's nothing to argue about.

A clean statement has one row per job:

The "Tech share" column includes parts reimbursed. A plus means you owe the tech. A minus means the tech owes you. At the bottom, the week nets to one number.

A few habits that keep this clean:

• Review before you pay. Check closed jobs, parts and collections before the statement goes out. Money a tech entered in the field isn't final until you've checked it.
• Use full customer names, not initials, so both sides can match the job.
• Keep the statements. If there's ever a question, you want the history.
• Don't let balances ride for months. A small weekly balance is easy. A large one from March is a fight.

Taxes and worker classification: ask a professional

This guide covers the pay math, not taxes or the law. Questions about 1099 forms, withholding, and whether someone counts as an independent contractor or an employee belong with your accountant or an employment attorney. The IRS has a plain overview of how it looks at contractor vs employee, and it notes there's no set number of factors that decides it. State rules can differ too.

How to pay subcontractor technicians without a spreadsheet

Plenty of owners run this on a spreadsheet. It works until you have several techs, a mix of cash and card, and a parts receipt that never got entered. Then Sunday night turns into an hour of matching.

Field service software can help. Some platforms include commission tools. Housecall Pro, for example, lists commission management by service type on its Essentials plan and up (as of October 2026, check their site for current details).

In DispatchMind, the Pro plan includes commissions and tech settlement: it works out what each tech is owed from their jobs, parts and payments. You also get tech access levels, so you decide what each tech can see and do in the tech app, from look-only to closing out jobs. Expenses can be logged so the profit on each job is real, and reports break down revenue and jobs by tech and job type.

For the daily side, see how to dispatch technicians. If you're weighing software, start with Workiz vs Jobber vs Housecall Pro.

Questions

How do companies usually pay subcontractor technicians?

A common setup is a percentage split of each job after parts and card fees come off the top, settled weekly on a statement. Some companies use flat per-job or hourly rates instead.

What percentage do subcontractors make?

It varies by trade, who brings the leads, and who supplies parts and tools. There's no single standard. Pick a split that covers your costs and put it in writing.

Should parts come out before the split?

Usually, yes. Taking parts off the top and reimbursing whoever paid for them keeps the person who stocked the truck from eating half the cost.

What if the technician collected cash?

The split stays the same, but the tech is holding the money, so they may owe you. Run one weekly balance that nets what you owe them against what they owe you.

Do I need to send subcontractors a 1099?

That's a question for your accountant. Tax forms and worker classification depend on your situation and your state.

Want to see commissions and tech settlement on your own jobs? Start a free 14-day trial of DispatchMind with everything switched on and no card, or check the plans and pricing.

Sources

• IRS: Independent contractor (self-employed) or employee?
• Housecall Pro pricing and plan features