Growing your business comes with plenty of risks, hiring the best contractors can be the most crucial step in a successful project. Let’s take a look at a few things to consider before making these decisions.
5 Things to Know Before Hiring an Independent Contractor
Know the contractor and Sign an Agreement – Always ask for references and contact sources to confirm any potential contractors are professional and perform satisfactory work. Simply owning a toolbelt and a hardhat doesn’t mean someone is capable of doing the job. It’s also important to have a contract in place, in case problems arise.
Decide how you plan to pay your contractor and payment type – Agree on either an hourly or fixed rate that will be paid and be sure to agree on terms for payments. Be sure any agreements spell out how much and when payments will be made. When it comes to money, never assume anything. PayWow allows you to pay your contractors via direct deposit or check while allowing you to keep track of each payment for your personal records.
Get your contractor’s W-9 information – Don’t be caught off-guard by not having the correct information for filing necessary tax and compliance forms. PayWow’s companion app myPayWow allows you to request that your contractor fill out and e-sign their W-9, providing you with timely and accurate information. Should the IRS come knocking on the door of your brand new house, be sure to have all of your bases covered. Nothing’s worse than living with a project in legal jeopardy.
Keep track of the job and the payments made – Even if your preferred contractor is highly recommended by multiple parties, don’t assume the work is being done correctly, this is your project so be your own Project Manager.. Even though it can be an inconvenience, be sure to monitor every aspect of its progress.
Report all 1099s for Contractor Payments – Staying on the right side of the law is extremely important when dealing with private contractors. Make sure they are paid correctly while also remaining in compliance with the IRS. With my PayWow you can upload your data and automatically file your Form 1099 as well as providing your contractors electronic access or mailing copies via post.
Let PayWow Keep Your Project Within Budget
Once you’ve got a handle on your project, allow PayWow to be your source for managing your contractor payments. In addition to simplifying the payment process, PayWow’s companion apps myPayWow and Kiosk integrate to assist in processing W2s and 1099s. Our tools work together to provide an onsite tool for assisting in tracking contractor hours as your project progresses.