Pa Packet

The worker performs work that is outside the usual course of the hiring entity's business; and. The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.

Form W-9. The IRS requires contractors to fill out a Form W-9, request for Taxpayer Identification Number and Certification, which you should keep on file for at least four years after the hiring. This form is used to request the correct name and Taxpayer Identification Number, or TIN, of the worker or their entity.

The IRS requires contractors to fill out a Form W-9, request for Taxpayer Identification Number and Certification, which you should keep on file for at least four years after the hiring. This form is used to request the correct name and Taxpayer Identification Number, or TIN, of the worker or their entity.

Each subcontractor should complete Form W-9 before they begin any work. On the form, the subcontractor identifies their business structure type (sole proprietorship, corporation, etc.). Form W-9 also asks for the subcontractor's name and Taxpayer Identification Number (TIN).

If you paid someone who is not your employee, such as a subcontractor, attorney or accountant $600 or more for services provided during the year, a Form 1099-NEC needs to be completed, and a copy of 1099-NEC must be provided to the independent contractor by January 31 of the year following payment.

1) Rely on Dependable Word of Mouth. 2) Check Previous Work. 3) Ask for References and Testimonials. 4) Look at Several Subs. 5) Compare the Right Criteria. 6) Describe the Project in Detail. 7) Don't Lowball on Pay.

Terms. This is the first section of any agreement or contract and states the names and locations of the parties involved. Responsibilities & Deliverables. Payment-Related Details. Confidentiality Clause. Contract Termination. Choice of Law.

IRS: Form 1099-NEC. IRS: Forms and Associated Taxes for Independent Contractors. IRS: Form W-9 Request for Taxpayer Identification Number and Certification. IRS: About Form 1099-MISC, Miscellaneous Income. Forbes: The Importance of a Written Agreement When Engaging Independent Contractors.

For most types of projects you hire an independent contractor (IC) to do, the law does not require you to put anything in writing. You can meet with the IC, agree on the terms of your arrangement, and have an oral contract or agreement that is legally binding. Just because you can doesn't mean you should, however.