Hire an Independent Contractor
When to Use This Flowchart
Use the Hire an Independent Contractor flowchart to navigate the process of hiring an independent contractor.
An independent contractor is a worker, other than an employee, who provides services for compensation under circumstances in which the individual retains the right to determine the manner and means of how the services are to be performed. Independent contractors run their own businesses, set their own schedules, balance conflicting demands and generally work in their own offices without direct supervision.
Independent contractors offer an employer flexibility to meet staffing demands and expertise in areas outside of the employer's business, and at the same time, allow employers to avoid the cost of payroll taxes and the burden of complying with certain employment laws in return for giving up some control over how, when and where work is performed.
This flowchart walks an employer through the major steps of hiring an independent contractor, from drafting an agreement to fulfilling reporting requirements.
Key Steps
- Prepare a project description and solicit proposals
- Ask the contractor to complete a questionnaire and provide supporting documentation
- Check references and consider conducting a background check
- Enter into an independent contractor agreement
