Independent Contractor Backup Withholding Procedures Revised: Employment Law Manual Updated

Author: Rena Pirsos, XpertHR Legal Editor

Newly revised Internal Revenue Service procedures allow independent contractors to stop or prevent backup withholding on reportable employer payments. Through August 1, 2014, an independent contractor who needed to validate his or her Social Security Number (SSN) to an employer could present a printout from one of the Social Security Administration's local offices. Under the new procedure, an independent contractor may provide an employer with a copy of his or her Social Security card showing the correct name and SSN.

The Withholding Taxes section of the Employment Law Manual has been updated accordingly.