3 Documents required while hiring a Contract Worker
Free Legal Document Creator is very helpful whether you’re preparing documents for an employee or a contract worker. However, when you know the essential documents to be created, it’s very easy to create them in minutes.
Whether you’re looking for a contractor or already have many working for you, you must have a pre-defined format to streamline basics for your firm.
Let us define an independent contractor for you first.
Who is a contract worker/independent contractor?
An independent contractor or persons working for you on a contract basis may belong to a separate business than yours. They may be freelancers, another firm whom you outsource, or professional handling finance or legal stuff for you.
In a nutshell, they are not your employees. They might be considered as self-employed individuals owning their business.
3 Key documents required for Hiring an Independent Contractor
- W-9 Form including the person’s contact information & taxpayer ID no.
- CV or resume to verify the individual’s background thoroughly
- Employment Contract defining the relationship of the firm with the individual
Besides this, some businesses also require a Non-Disclosure Agreement signed by the independent contractor. This is additional & optional for some firms who share the vital workflow with the contract worker.
Let’s understand these basic documents in detail:
Document #1: W-9 Form
First things first, when you hire a contract worker, it is very important to get their tax information. Every independent contractor must complete a W-9 Form which is a request for taxpayer ID & certification.
The main purpose is to:
- Certify the person’s taxpayer ID (EIN & SSN)
- Certify that the person is not subject to backup withholding
- Certify that the person is exempted from certain types of payments & reporting
Document #2: Resume & References
As an employer or hiring manager, you should know what details you need on hand. For instance, you might not need a printable job application form filled by the contract worker that is mandatory while hiring an employee.
You need a CV or resume for performing background checks like the types of projects handled, niches they’ve worked with & if they are the right fit for you. The rest of the details can be discussed later.
Document #3: Employment Contract
You may wonder why you need to use Free Employment Contract Template when you’re hiring someone temporarily. But, it is stated nowhere that you cannot create an employment contract while hiring an independent contractor.
Though they are not hired permanently, they hold value for the firm. And so, many firms create monthly, 3-month or 6-month contract, depending on their needs.
The most crucial part of making this document is defining that this individual is a contractor & not an employee
The followed issues must be addressed in the contract to avoid any disputes:
- The scope of work, when the job will be done & the deadlines
- The pay amount & the pay duration along with the actions to be undertaken if payment is not made on time
- The ownership of the work
As mentioned above, you may create a free printable confidentiality agreement along with these three documents. Also, you may proceed to a non-complete agreement & non-solicitation agreement, if required.
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