Contactor Hiring

____ W9

____ Resume

____ Contract

____ Lic cert etc.

____ ID

____ Background Check

____ non-disclosure agreements (NDAs)

Form 1099 must be sent to IRS by Jan 31

Only pay your contractor once they’ve sent an invoice your way.
Much of the distinction between an employee and an independent contractor has to do with control.
For instance, in Scenario 3, Majestic Engineering has no control over how, when, or where the
contractor performs the work. Control is one of the key components used to determine independent
contractor status.

By Jan. 31: Make sure you send the 1099-MISC to the contractor by the last day
of January. If that happens to fall on a weekend, you have until the following
Monday.

By Feb. 28: You’ll have until the end of February to send a copy of the 1099-
MISC to the IRS — or submit it by March 1 if you file your 1099s electronically
through the FIRE system.

PRO TIP: Prefer paper? If you file your 1099s by mail, you’ll also need to submit Form
1096, which is a summary of all your 1099 forms. Add one more piece of paper to your
pile

The information for this form comes from your business records for non-
employee payments for each person or business you pay for services. You might
be paying these individuals under "Professional Fees" or "Other Payments." Be
sure to keep track of these payments by the vendor so you can run a list at the
end of the year.

Some issues that need to be addressed in this contract and some terms that
need to be included:

• The scope of work, including when the job is to be done, and deadlines.
• Amounts and timing of payments, when payments are due, what happens
if payments are not made.
• Who owns the work — the contractor or the hiring company?