Hiring An Independent Contractor

From Smallbusinesslibrary

As your small business grows you will likely have the need to hire people to perform tasks that are critical for the operations of your business. However, you may not want to commit to hiring a part-time or full-time employee. Hiring an independent contractor may be a smart way to grow your business with minimal commitment. Some of the advantages of hiring independent contractors include not having to pay employment taxes and being able to pay by the project instead of hourly. Additionally you can outsource work to remote areas of the country or even overseas if it is work that can be completed over the internet.

How to Legally Hire Independent Contractors for Your Small Business (eHow)
Some general steps for hiring an independent contractor.

Hiring an Independent Contractor (Entreprenuer.com)
Explains what makes a worker an independent contractor versus an employee.

Independent Contractor (Self-Employed) or Employee? (IRS.gov)
Questions that help determine whether a worker is an independent contractor or employee.

Places to Find Contractors

Elance.com
Elance helps you connect with independent contractors that can work remotely. You can post jobs and individuals will make a bid. You can also review ratings of contractors who have received reviews of their past work.

Odesk.com
Similar to Elance with thousands of service providers that live all over the globe and can provide a wide range of skills from programming to writing. Unlike Elance, Odesk allows you to pay based on hours worked and you can watch your worker's progress over the internet.

Craigslist
Craigslist allows you to post job opportunities for a small fee. You can specify that you are looking for a contractor rather than a full-time employee.

Tax Forms for Hiring Independent Contractors

Forms and Associated Taxes for Independent Contractors (IRS.gov)
It is the business owners responsibility to have contractors fill out a W9 form. If you pay an independent contractor over $600 during the year, you are required to submit a Form 1099-MISC to the IRS and provide a copy to the independent contractor.