Friday, September 19, 2014

I am running a brand new LLC in Florida. We are hiring agents as subcontractors, who will be paid commission only and given 1099 forms for t...

Question

I am running a brand new LLC in Florida. We are hiring agents as subcontractors, who will be paid commission only and given 1099 forms for tax time. Do these agents need to fill out I-9 forms still? Thanks!



Answer

Independent contractors do not need I-9. They do need to fill out a W-9 each year. Be careful. Just because you are calling them independent contractors and paying on a commission basis does not mean that the IRS or state (for workers' compensation and unemployment purposes) cannot retroactively re-classify them as employees.



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