Independent Contractors and Employee Issues

What you should know about independent contractors, including hiring paperwork, how a contractor is paid, how independent contractor earnings are reported to the IRS, independent contractor agreements, laws relating to independent contractors, and the difference between an independent contractor and an employee.

Describes a 1099-MISC form, how it is filed and how the recipient includes it in his or her income taxes.

What to include in an independent contractor agreement, including restrictive covenants, discussion of terms, and more.

Laws relating to independent contractors, including IRS regulations and Department of Labor regulations.

Independent Contractor

Laws relating to independent contractors, including IRS regulations and Department of Labor regulations.

All about employment contracts, including terms included in employment contracts, why employment contracts are important in a family business, and more.

Difference between a sole proprietor and an independent contractor. They are essentially the same: A sole proprietor files income taxes on Schedule C. An independent contractor receives income on a Form 1099-MISC. Income from a 1099 can be included in a Schedule C.

Describes Form W-9,

How to prevent trouble in a family business with the use of employment contracts and agreements.

If you are considering hiring an independent contractor, here are some tax considerations and employment agreements you should should know about.

How your business can qualify to receive Section 503 relief from paying employment taxes on independent contractors.

Factors the IRS uses to determine whether a worker is an independent contractor or an employee.

The IRS sets requirements for categorizing workers as independent contractors or as employees. Here is a brief discussion of the distinctions.

This article describes the advantages and disadvantages of hiring a worker as an employee or an independent contractor.

Determining whether a worker is an independent contractor or an employee is often a difficult question for employers. Employers often try to get a worker classified as an independent contractor so they don't have to pay FICA (Social Security, Medicare) taxes for that worker. But the IRS considers a worker to be an employee unless independent...

When you hire a new employee, in most cases there is no written contract, only an implied one. But for professional and top management employees, you may decide that you want further protection, in which case an employment contract is necessary. Here are some reasons why you might want an employment contract.

Who owns employee work? The employee, or the business owner who employs that person? Is there a difference between employee work and contractor work, in terms of ownership? What is the concept of work-for-hire and what kinds of exceptions are there to this concept?

Form 1099-MISC

Backup withholding is income tax withholding taken from the compensation of non-employees and from other payments. In most cases, you don't need to withhold income taxes from non-employees, unless they don't qualify for a backup withholding exemption. If you think it's confusing, it is (it's the IRS, after all). In this article you will learn...

IRS backup withholding notices ("B" notice, "C" notice): What they are and what you must do when you receive these notices.

Terms of an Employment Contract

How to get W-2 forms to prepare and distribute to employees.

What is backup withholding, what are rules for backup withholding, and how to comply with those rules.

How an independent contractor gets paid.

New hire paperwork when hiring an independent contractor, including Form W-9, a resume for the worker, and a copy of the employment contract.

Attorney Susan Dawson discusses five ways an attorney can help you prepare an employee handbook.

Employers may be able to continue to classify workers as independent contractors if they meet the requirements for Section 530 (IRS Code) relief. Three requirements must be met.

Describes the IRS Voluntary Classification Settlement Program (VCSP) to provide relief for businesses that have mis-classified workers as independent contractors instead of employees.

If you hire a nanny or other domestic employee, you become an employer and you are subject to all the regulations any employer must face. If you hire domestic services as independent contractors, you must also comply with IRS and state employment regulations.

Definition of a safe harbor, as it relates to IRS regulations.