The Internal Revenue Service defines an independent contractor as \u201ca business owner or contractor who provides services to other businesses.\u201d They are responsible for their own social security, taxes, and retirement and health insurance\u00a0plans\u00a0and are not entitled to company coverages. If you choose to hire an independent contractor, you have to stay on top of the regulations set forth by the government.<\/p>\n
There are stipulations, both relating to taxes and penalties, set in place to maintain what an independent contractor can do, how they get paid, and more. There are specific documents that you need to obtain from the independent contractor(s), as well as documents that they need to fill out so you can remain within the realms of the law. Taking the appropriate legal channels and completing the correct forms is a safe business practice.<\/p>\n
Prior to hiring, either during an in person or over the phone interview, ask the independent contractor for the following information; this step will help you verify their legitimacy.<\/p>\n
After you\u2019ve decided to hire a contractor, ask them for the following information, forms, and documents to verify if the contractor is legitimate.<\/p>\n
Since the contractor works for your company on a service-rendering basis, it is vital to have a written contract stating the terms of agreement; this helps if there is ever a future dispute.<\/p>\n
Independent contractors are held within a different bracket when it comes to paying for their taxes. An employee shares the responsibility for social security and Medicare with their employer, where a contractor is responsible for it on their own. As a hiring professional within a company, you must provide the IRS with tax related forms for any independent contractors and employees that are working for you, and the documents are not the same. Keep them separate, but make sure to have all the documents filed so you don\u2019t get audited or have to pay any unnecessary fees.<\/p>\n
After you\u2019ve finished the interviewing process, and have obtained all relative documentation, you should submit all necessary tax forms to the IRS within the allotted time period. Hiring an independent contractor allows you to have the services rendered that you require, when and how you require them. However, the government has strict rules on how the contractor works with you, and following these rules will keep you and your company safe from any kind of tax fraud liability.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Internal Revenue Service defines an independent contractor as \u201ca business owner or contractor who provides services to other businesses.\u201d They are responsible for their own social security, taxes, and retirement and health insurance plans and are not entitled to company coverages. If you choose to hire an independent contractor, you have to stay on top of the regulations set forth by the government.<\/p>\n","protected":false},"author":5,"featured_media":2627,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"inline_featured_image":false,"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[117,92],"tags":[95,118,110,116],"class_list":["post-2688","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-owner-responsibilities","category-independent-contractor","tag-business-insurance","tag-business-owner-responsibilities","tag-independent-contractor","tag-independent-contractor-vs-employee"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t