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Independent Contractor Documentation Texas

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  • Independent Contractor Documentation Texas


    If we are for sure paying a clearly identified Independent Contractor $600 or more in one year, what specific documents are best to ask for as proof to go along with the W-9?

    Also, are foreign documents acceptable as proof of ID as long as there appears to be a valid SS card or TIN card?


  • #2
    You should ask for proof of insurance so that when it comes to Workers Compensation Audit time, you don't have to scramble to prove to the insurance carrier that they shouldn't be counted under your WC policy. Possibly also need for general/umbrella liability policies.

    Other than that, I can't say we have asked for proof beyond the W-9.

    We just make sure that from our side we are classifying the person correctly. Just because they want to be an IC, doesn't mean that they legally fall under the bounds of an IC. We have found many who have documents couldn't support employment under an I-9 process so they try to get you to make them an IC. We've also had people want to do the IC route because they are hiding from the IRS or Child Support Groups. We hold the line hard and fast. If it is a gray area, we are conservative and require them to be an employee.


    • #3
      Just to be clear, the difference between employee and independent contractor (IC) is statutory, meaning a matter of law and not some decision made between parties. VERY BAD THINGS can happen to employers who misclassify workers as IC that the law regards as employees. The fact that the worker would have failed I-9 testing in no protects the employee from the VERY BAD THINGS that will occur should it turn out that the worker was misclassified.

      Now past that, if the worker is legitimately an IC under statutory law, then if we are talking federal law only and private sector employees, unless something has changed that I have not heard about (always possible), then there is no immigration specific rules on employers and legitimately classified IC. Second HOWEVER is that this is not true for many state and I believe for federal contractors. This is also the sort of thing that tends to have related pending legislation in Congress at any given point in time, so very much subject to change in the future.

      So, worker classification and eligibility to work in the country are both important, but legally unrelated to each other. Both issues need to be separately addressed by employers.
      "Reality is that which, when you stop believing in it, doesn't go away".
      Philip K. **** (1928-1982)


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