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Want to hire employees to send out as contractors..what paperwork do I need

by LawGirl, Window Shopper

  • Created: December 28, 2010, 7:09 am
  • Updated: January 31, 2011, 4:23 pm
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4 comments

Hello I am a former recruiter that has met the requirements of my non compete and I have decided to get back into recruiting. At my former company I would send out contractors to clients that needed assistance with projects. We would hire the contractor as our employee and than bill the client for the contractor based on an agreed hourly fee. What paper work I will need to be able to do that again? I know that I will need the I9 and the W-4 but else will I need to be able to pay all the required taxes?

Any help that someone can give me would be greatly appreciated.

With Regards,

Sharon Wilson

Tags: Discuss Popular Topics, Filing and Paying Taxes
‹ Tax Break Re: Do I need to pay taxes? ›

BriaS | Community Moderator | 12/28/2010 - 7:09 am

Hi LawGirl, Check out the Business.gov page on Hiring Independent Contractors. It gives information about tax requirements and some laws to follow. Feel free to post more questions! BriaS

phanio | Contributor | 1/4/2011 - 11:09 am

Sharon, I would suggest this. Find a local CPA firm in your area and let them handle it. I can guarantee that the minor cost for this (less then you think) will be much less then the time you have to spend in doing this. They will tell you want you need and keep abreast of all the laws. For financing your business - there are many financing company that love to work with staffing firms. Thus, when you place someone - you will not get paid for their efforts for some time (two weeks to a whole month) yet they will want to be paid weekly as well as you will have to cover your daily expenses. Thus, you can factor your placement contracts for cash today - helping you grow your business.
Professional Web Site: http://www.businessmoneytoday.com/

BizResearcher | Window Shopper | 1/4/2011 - 12:21 pm

Show Replied Text…
Sharon, I would suggest this. Find a local CPA firm in your area and let them handle it. I can guarantee that the minor cost for this (less then you think) will be much less then the time you have to spend in doing this. They will tell you want you need and keep abreast of all the laws.For financing your business - there are many financing company that love to work with staffing firms. Thus, when you place someone - you will not get paid for their efforts for some time (two weeks to a whole month) yet they will want to be paid weekly as well as you will have to cover your daily expenses. Thus, you can factor your placement contracts for cash today - helping you grow your business.
If I understand correctly, you will be hiring employees, not independent contractors, who will work for you. You will send your employees to complete work secured by you; is that correct? If so, you will need to register with your state department of labor and you will need to carry workers comp insurance. If you are not sure of the difference between an independent contractor and an employee, you might want to visit the IRS web site and check their definition and requirements. If you misclassify your workers, you get into trouble. As Phanio mentioned, you may want to talk with a CPA about the requirements and have him/her set up your accounting system for you.

BriaS | Community Moderator | 1/4/2011 - 12:33 pm

Sorry Sharon, I gave you information about hiring contractors. Now I understand that they will be your employees, but will be contractors to your clients. The website that Bizresearcher is referring to is IRS: Contractor or Employee. If your employees will be government contractors, check out Government Contracting. Will this business be a staffing agency? BriaS