How do I hire employees and independent contractors?
To hire employees and independent contractors in the District of Columbia, you must follow state and federal regulations. To hire an employee in the District of Columbia, you must obtain a business license from the District Department of Consumer and Regulatory Affairs (DCRA). Afterward, you must register for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). With the EIN, you must also register for unemployment insurance and workers’ compensation from the District’s Department of Employment Services. To hire independent contractors, you must review their qualifications, verify the accuracy of their statements and inform them of the scope of work. You must also provide documents such as contracts that outline the terms and conditions of the services they will provide. The contract should include the contractor’s compensation, the conditions of payment, the limitations of liability, and any other pertinent information. Additionally, you must also adhere to federal and local laws regarding the classification of employees and independent contractors in the District of Columbia. The IRS has a detailed guide outlining the criteria for classifying workers. In the District, independent contractors are responsible for paying their own taxes and may be subject to the District of Columbia Wage Payment and Collection Law. Ultimately, when hiring employees and independent contractors in the District of Columbia, you must follow all applicable state and federal regulations.
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