How do I hire employees and independent contractors?

In Missouri, there is a process for legally hiring employees and independent contractors that must be followed. To hire an employee, you must have a Missouri Employer Tax Number issued by the Missouri Department of Revenue. You must also have workers’ compensation insurance, pay all applicable state and federal taxes, and withhold taxes from employee wages. You’ll also need to ensure that the employer-employee relationship is legally recognized in the state. To hire an independent contractor instead of an employee, you must first determine if the person meets the legal definition of an independent contractor in Missouri. An independent contractor is different than an employee in that the contractor is subject to their own state and federal taxes, carries their own insurance, and has a contract that defines the scope of their work. You must also have a financial agreement with the independent contractor that outlines the terms of the agreement. It should include how you will pay the contractor, the work they will do, and the rights they will have. Additionally, you must provide the contractor with a 1099-MISC form at the end of the year. A lawyer or other professional with knowledge of the Missouri business formation law can be helpful in navigating the process of legally hiring both employees and independent contractors.

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How do I hire employees and independent contractors?

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