Hiring your first contractor? Do the tax part right.
Paying someone for work makes you responsible for reporting it. Three steps, in this order.
The guides you need
Fill out a W-9 correctly, and know who actually needs to send one.
Collect one before you pay them, not after. It has the details you need in January.
Tool: Step-by-step guide
Taxes for freelancers, contractors, and gig workers, without the jargon.
Report what you paid. There are thresholds, and there are deadlines.
Tool: Self-employment tax calculator
Employment eligibility verification, explained for both employees and employers.
Only if they are an employee. Knowing which they are is the whole question.
Tool: Acceptable documents picker
Get your EIN from the IRS at no cost, and steer clear of the look-alike paid sites.
You will need one to file the paperwork as a business.
Tool: Official versus paid comparison
Start here
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