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Hire 1099 in California 2

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RacknRoll

RacknRoll

Civil/Environmental
Jun 8, 2022
17
HI All,

I'm looking to hire an independent contractor in California. Now i understand Cali has all sorts of limitations, and there are lots of questions about what constitutes an IC, but let's put that aside for now. What i really am hoping for some help with is a general outline of what i will need to do. I've never done this before and I'm a bit timid to wade in.

Steps, as i see it:
1. Obtain from contractor: W-9 (IRS), Business License and Contractors license, and Independent Contractor Agreement (I have a NOLO book on this)
2. Pay Contractor via check or direct deposit
3. Issue 1099-MISC yearly

Also, I do my own taxes too - maybe I should hire a CPA to simply help me set this up?

 
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Anyone who runs any business where they hire people, even it's exclusively as independent contractors, and they are NOT having a CPA or professional tax person doing their taxes, is just looking for problems.

John R. Baker, P.E. (ret)
Irvine, CA
Siemens PLM:
UG/NX Museum:

The secret of life is not finding someone to live with
It's finding someone you can't live without
 
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Steps, as i see it:
1. Obtain from contractor: W-9 (IRS), Business License and Contractors license, and Independent Contractor Agreement (I have a NOLO book on this)
2. Pay Contractor via check or direct deposit
3. Issue 1099-MISC yearly
Click to expand...

If they are truly independent contractors, then they should have firm fixed-price, or cost-plus, contracts, with hours and terms set by the contractor. If they are at your beck and call, then they're employees. And it's not just California, the IRS doesn't look favorably at ICs either.

TTFN (ta ta for now)
I can do absolutely anything. I'm an expert! faq731-376 forum1529 Entire Forum list
 
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#1 make sure whoever you hire has current insurance policies: general, professional, and worker's comp (if not a sole proprietor).
 
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