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What is the difference between an employee and an independent contractor?
An IC can hire assistants to perform the work she contracts with the employer to do. An employee often works for the employer year after year. An IC is hired only to perform a certain job.
Do independent contractors get 1099-MISC or 1099-NEC?
If you pay independent contractors, you may have to file Form 1099-NEC, Nonemployee Compensation, to report payments for services performed for your trade or business.
What forms do independent contractors need to fill out?
The IRS requires contractors to fill out a Form W-9, a request for a 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.
What paperwork is needed to hire an independent contractor?
If you decide to hire independent contractors, youll need to collect the following documentation: Form W-9. Forms W-8BEN or W-8BEN-E. Form 1099-NEC. Form SS-8. Independent contractor agreement. Confidentiality agreement (NDA) Non-compete agreement. Non-solicitation agreement.
What is an independent contractor in Ohio?
Defining independent contractors An independent contractor in Ohio operates as a separate business entity. They control the manner in which they perform their work and the outcomes they deliver. Independent contractors provide their own tools and equipment, set their own hours and often have multiple clients.
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What paperwork does an independent contractor need to fill out?
Form W-9. If youve made the determination that the person youre paying is an independent contractor, the first step is to have the contractor complete Form W-9, Request for Taxpayer Identification Number and Certification.
Do independent contractors fill out a W9 or 1099?
The main differences between W-9 and 1099 tax forms are that a W-9 is filled out by the supplier or independent contractor to provide their tax and payment information to the payer, whereas 1099 forms are provided by the payer to document the supplier or contractors gross earnings and any backup withholding after
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