Independent Contractor Compliance Checklist (HR)

Ensure your business stays compliant & avoids legal pitfalls. This HR checklist guides you through critical steps for classifying & managing independent contractors, minimizing risk & maximizing efficiency. Download now & protect your company!

This Template was installed 2 times.

Contractor Identification & Assessment

1 of 10

Initial evaluation to determine proper classification.

Reason for Engaging Contractor

Primary Business Activity of Contractor

Estimated Hours per Week (Average)

Date of Initial Contact/Proposal Received

Contractor's Role in Project

Is contractor supervised by company employee?

Written Contract & Agreement

2 of 10

Ensuring a comprehensive and legally sound agreement is in place.

Scope of Work Description

Contract Duration (in months)

Contract Start Date

Contract End Date

Payment Terms (e.g., Net 30, Hourly)

Company Representative Signature

Contractor Signature

Payment & Tax Withholding

3 of 10

Confirming accurate payment and appropriate tax documentation.

Contractor Hourly Rate

Payment Frequency

Total Amount Paid (Current Period)

1099-NEC Form Upload

Payment Method

Federal Tax Withheld (Estimated)

State Tax Withheld (Estimated)

Control & Direction

4 of 10

Verifying contractor has appropriate control over work performed.

Does the company dictate work hours?

Does the company provide detailed instructions on how to perform tasks?

Estimated percentage of work directly supervised by company personnel:

Describe the level of control the company exerts over the contractor's work processes.

Does the contractor have flexibility in determining the order in which tasks are completed?

Explain any deviations from typical employee supervision.

Equipment & Resources

5 of 10

Assessing provision of equipment and resources.

Quantity of Equipment Provided

Type of Equipment Provided (e.g., Laptop, Tools)

Description of Resources Provided (e.g., Office Space, Utilities)

Is Office Space Provided?

Date Equipment/Resources Provided

Intellectual Property Rights

6 of 10

Addressing ownership and usage of intellectual property.

Ownership of Work Product

Description of Intellectual Property Rights Granted

Confidentiality Agreement Required?

Confidentiality/NDA Document (if applicable)

Scope of Licensed Rights (e.g., usage, territory)

Right to Modify Work Product?

Insurance & Liability

7 of 10

Checking for appropriate insurance coverage and liability considerations.

Contractor's Insurance Coverage Type

General Liability Insurance Coverage Amount (USD)

Professional Liability (E&O) Insurance Coverage Amount (USD)

Certificate of Insurance Received?

Upload Certificate of Insurance

Certificate of Insurance Expiration Date

Ongoing Compliance Review

8 of 10

Regularly reviewing contractor relationships to maintain compliance.

Last Review Date

Review Type

Hours Spent Reviewing

Review Notes & Findings

Areas Verified

Compliance Status

Record Keeping & Documentation

9 of 10

Maintaining accurate records of contractor agreements and compliance activities.

Contract Start Date

Contract End Date (if applicable)

Signed Contractor Agreement

W-9 Form (or equivalent)

Notes on contractor relationship and compliance activities

Total payments made to contractor (YTD)

Type of Documentation

Misclassification Risk Mitigation

10 of 10

Procedures to minimize potential misclassification issues and penalties.

Review Process Used for Classification?

Number of Contractors Currently Engaged

Date of Last Misclassification Risk Review

Description of Training Provided to Hiring Managers on IC vs. Employee

Does Hiring Manager Certification Exist?

Upload Supporting Documentation of Classification Justification

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