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I have operated an independent consulting company since 1995. Each contractor that you hire should present to you their own contract, or you can come up with one and ask them to sign it.1 of 1 people found this helpful
Do not give them business cards. Do not give them an email address on your server. These can imply an employer/employee relationship.
My contract states that I wll be responsible for all taxes. That there is no implied partnership and or employee relationship, and that it is understood that no benefits such as health insurance or 401K etc will be provided. You may want to check with your workers compensation board on their status if they are hurt on the job so that they are prohibited from working.
Be very careful. When you hire an independent contractor you have to truly let them work independently. This generally means they can work whatever hours they want so long as they get the job done. For example, if you hire someone as an independent contractor you can't then require them to be on the job from 8:00 till 5:00. If they want to work from 8:00 a.m. till 11:00 a.m., then take off a few hours and finish up late that night they can. After all, they are "independent."1 of 1 people found this helpful
This is a big red flag for the IRS and for other government agencies. There have been a number of cases where the government has disallowed the independent contractor status and businesses have been hit with back taxes, fines and other penalties.
Bottom line: Get some good legal/accounting advice. Then make sure that they are independent contractors both in function as well as in name.
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Hello. I am thinking about hiring some independent contractors and had a few questions. When you hire them, is it as simple as making them complete a 10-99 and then paying them there rate time the number of house? Do I have to carry any insurance in case they are hurt on the job. I am kind of lost here. Any help would be great. Thanks!