Hiring Independent Contractors FAQ

Once I hire an IC, are there steps I can take to avoid classification problems with government agencies?

Yes. For the most part, these strategies boil down to treating the IC like an independent business person rather than an employee. For example, you shouldn't train or closely supervise an IC, nor should you require an IC to work certain hours or attend company functions. If an IC finishes the project for which he or she was hired, you shouldn't give the IC more work until you create a new IC agreement. And, don't give an IC benefits, business cards, or other perks that you provide to employees. 

For more tips on managing your relationship with ICs in a way that protects their independent status, see Working With Independent Contractors: Avoiding Classification Problems

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