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Protect Yourself When Hiring a ContractorGet Proof of Bonding, Licenses, and Insurance.Don't Base Your Decision Solely on Price.Ask for References.Avoid Paying Too Much Upfront.Secure a Written Contract.Be Wary of Pressure and Scare Tactics.Consider Hiring Specialized Pros for Additional Guidance.Go With Your Gut.
8. Services rendered personally. Must the worker provide the services personally, as opposed to delegating tasks to someone else? (This indicates that you are interested in the methods employed, and not just the results.)
A Contractor does not give you his SIN, he is a business. He should provide you with is business number/HST number and you should require his workers comp as well.
General liability insurance is essential for independent contractors because: It protects you and your business. Independent contractors have the same legal obligations and liability exposures as larger firms. They can be sued for damaging client property, causing bodily harm, or advertising injury.
Do not give your Social Insurance Number (SIN) number out to just anyone! It is a confidential number. Some government organizations or private businesses ask for the SIN because it is a simple way to identify you. Many use it as a client account number so that they don't have to set up their own numbering system.
The law does not require you to complete a contract with your self-employed or freelance workers - a verbal contract can exist even when there is nothing in writing.
Doing Work as an Independent Contractor: How to Protect Yourself and Price Your ServicesProtect your social security number.Have a clearly defined scope of work and contract in place with clients.Get general/professional liability insurance.Consider incorporating or creating a limited liability company (LLC).More items...?15-Oct-2019
Contract work provides greater independence, it can give you more predictable control of your work, and for many people, greater job security than traditional full-time employment. However, you are responsible for your own taxes, contracts, benefits and vacations.
To ensure you're protected from start to finish, always follow these protocols before you hire.Get Proof of Bonding, Licenses, and Insurance.Don't Base Your Decision Solely on Price.Ask for References.Avoid Paying Too Much Upfront.Secure a Written Contract.Be Wary of Pressure and Scare Tactics.More items...?
Cons of Independent Contracting Employers like contractors because they can avoid paying for taxes and benefits, and that means those costs fall entirely on independent contractors. Contractors must withhold their own federal, state, and local taxes. They may also have to submit quarterly estimated taxes to the IRS.