Can we hire only independent Contractors from our state?

Question

What forms do we need our independent contractors to fill out for taxes?

Answer 1

you should only hire contractors from your state, county, city, or neighborhood if possible because they are more familiar with the codes and regulations in your area, however it is a simple process in most areas or states to hire an outside contractor as long as the area they come from meets or exceeds the regulations of your state. as far as forms or taxes we need to know what state your in to find out,  or you can check with your local building dept.

Answer 2

depends on the positions you are hiring for - only certain types of work can be hired out like that - if you're talking manufacturing jobs or office workers - you have to pay them as a w-2 employee, withhold  and pay income taxes, unemployment taxes, probably health benefits  and maybe workmans compensation insurance to get them to work for you - you just can't hire anyone as an independent contractor  there are specific labor and tax laws involved

Answer 3

W-9 for their Social Security Number.

If you hire people as independent contractors, you have to treat them as independent contractors. Just calling them independent contractors, even if the worker agrees, is baloney.

Using an independent contractor means you can dictate what the end product looks like but not the means to get there.  If you treat them like employees--pay a low amount that looks like wages by the hour, provide tools and a place to work, demand their presence at your location, dictate work hours--when one of them gets fired or injured on the job they are going to file an unemployment or workers compensation claim and you are going to have a big tax bill that you thought you could avoid.  If you try to cheat the system, eventually it is going to come back and bite you.