WorkerStatus.Com | Check List

Do these things BEFORE you start using the worker(s).
If you have already started, better late then never.

1	Due Diligence	Make sure -- very sure -- that the worker is an independent contractor and not an employee. Consultation with an expert is recommended. If there is no room in your budget for a consultation, at a minimum, review and make a record of relevant statutes and court decisions. These will be invaluable when you get your audit notice.
2	Written Agreement	Use a well drafted Independent Contractor Agreement. Be careful! A poorly drafted agreement can actually help an IRS or State auditor reclassify the worker(s) from independent contractor to employee.
3	Form W-9	Get a signed IRS Form W-9, Request for Taxpayer Identification Number and Certification, from the worker. Keep it for your file. No need to file it with the IRS or State. You will be liable for 31% backup withholding if you fail to get a Form W-9 or otherwise fail to get the worker's social security number or Federal employer identification number.
4	Form 1099	Provide to the worker, and file with the IRS, a Form 1099-MISC each year that you pay $600 or more to the independent contractor.