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INDEPENDENT CONTRACTORS AND CONSULTANTS
Discussion
After determining whether an individual is an Employee vs. Independent
Contractor, NPC’s should have an agreement with the independent
contractor or consultant. The agreement should outline the terms and
conditions of the contract (i.e., description of services, duration of
performance, compensation, ownership of records, etc.)
In
addition, an independent contractor or consultant should complete IRS
Form W-9, which is needed to obtain their TIN or taxpayer identification
number. If individual consultants or independent contractors have been
paid at least $600 in income during a calendar year, then IRS Form 1099
will need to be completed and sent to each individual by the end of
January following the year in which the income was earned. In addition,
IRS Form 1098 will need to be filed with the IRS by February 28 with
copies of all IRS Form 1099’s issued for the year.
Helpful forms
Consultant Agreement
Helpful links
www.irs.gov -
look for Publication 1779
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