Independent Contractor Onboarding Checklist

Put the engagement in writing before work begins.

Describe deliverables, timeline, and acceptance criteria in the agreement.

State rate, invoicing process, and payment schedule in the agreement.

Collect a completed Form W-9 from the contractor for tax reporting. Source: IRS.

Businesses generally file Form 1099-NEC for contractors paid above the IRS reporting threshold in a year. Confirm the current threshold with the IRS. For payments made after December 31, 2025, the federal threshold is $2,000, adjusted for inflation after 2026.

If the contractor will create work product, address who owns it in the agreement. Absent a written assignment, ownership defaults may surprise both parties.

Include confidentiality terms if the contractor will see sensitive business information.

Worker classification depends on the facts under IRS and U.S. Department of Labor tests. Review the official guidance; misclassification carries tax and legal consequences. This checklist does not determine classification.