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Independent Contractor Procedures
Purpose:
Designation of Independent Contractor (IC) status is governed by the Internal Revenue
Service (IRS) tax code and common law. Significant tax penalties exist
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What is independent contractor procedures?
Independent contractor procedures are the guidelines and steps followed by a business when hiring individuals to work on a contract basis.
Who is required to file independent contractor procedures?
Employers who hire independent contractors are required to file independent contractor procedures.
How to fill out independent contractor procedures?
To fill out independent contractor procedures, employers need to gather information about the contractor, including their services provided, payment terms, and tax identification number.
What is the purpose of independent contractor procedures?
The purpose of independent contractor procedures is to establish a clear understanding between the employer and contractor regarding the terms of their agreement.
What information must be reported on independent contractor procedures?
Information such as the contractor's name, address, services provided, payment terms, and tax identification number must be reported on independent contractor procedures.
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