![]() ![]() A TIN is either a Social Security number or an employer identification number (EIN) if the contractor is registered as a business entity. This form is used to request the correct name and taxpayer identification number (TIN) for the person with whom you are contracting. You won’t need to submit this to the IRS, but you will need to keep it on file for at least four years after the hiring date. ![]() Start with the IRS Form W-9: Request for Taxpayer Identification Number and Certification. If not, then here are the forms you will need to get started working with an independent contractor. If you answer yes to all of these questions, it’s highly likely that the individual is an employee rather than a contract worker or independent contractor. Type of relationship: Are there written contracts or employee-type benefits, such as a pension plan, insurance and vacation pay? Will the relationship continue, and is the work performed a key aspect of the business?.Financial: Are the business aspects of the worker’s job controlled by the payer? (e.g., Will the organization determine how the worker is paid, reimburse for expenses or provide tools/supplies, etc.?).Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?.The IRS applies three factors in determining whether the hire is a contract worker or not. There are different documents needed whether the person whom you are hiring is an independent contractor or a full-time employee. Here are some key contract worker forms you need to know when working with your next independent contractor. There are different forms needed and documents to collect to stay compliant with IRS tax regulations. Hiring a contract worker, however, is a slightly different process to bringing in a full-time employee. ![]() Contract workers allow business owners to hire help for specific short-term projects, a seasonal shopping rush or to fill in a talent gap while searching for a full-time new hire. Getty Images/jacoblundĭata shows that in recent years, more and more small business owners are turning to contract workers in lieu of hiring full-time employees. From IRS forms to invoices and contracts, there are various types of paperwork to complete when hiring contract workers for your business. ![]()
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