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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.
Are 1099 employees considered subcontractors?
A subcontractor agreement outlines the business relationship between subcontractors and contractors during a project. It states what work the subcontractor will complete on behalf of the contractor. Ensuring all parties know their responsibilities and obligations is important to any project.
Do subcontractors get a 1099-MISC or 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 subcontractors need to fill out?
Each subcontractor should complete Form W-9 before they begin any work. On the form, the subcontractor identifies their business structure type (sole proprietorship, corporation, etc.). Form W-9 also asks for the subcontractors name and Taxpayer Identification Number (TIN).
Whats the difference between a 1099 and a W9?
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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What paperwork do I need to hire a subcontractor?
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.
Related links
SUBCONTRACTOR APPROVAL FORM
A subcontractor selected to perform work on a construction project funded or assisted by the City of New York must complete a DLS Construction Employment
Mar 3, 2025 All contractors must comply with New York State Labor Law Section 220-I and submit their NYS. DOL Certificate of Contractor Registration with
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