Contractor Payroll – How to manage these employees is one of the most significant aspects of the operation of a business. Hiring an in-house independent contractor, often referred to as an 899 independent contractor or freelancer, can be a great deal for your organization. But how do you know that you are making the best use of your time? By following these basic tips, you can ensure that you have employed the very best contractor payroll services available.
Tips on Contractor Payroll Services
First, you should ensure that the contractor is on the payroll. By this we mean that they have received a pay stub and a tax number which can provide you with accurate information about their income and expenses. While it is true that an in-house employee might not need such detailed records, your contractor needs to know about his paychecks, as well as any tax returns that he or she is required to file. This is important, as an improper claim for federal or state tax return withholding could lead to hefty fines and even imprisonment.
Second, you should investigate if the contractor has ever been sued before. This is because a contractor is still liable for the performance of work done by him or her. Any mistakes or delays will be the responsibility of the contractor’s employer.