How do I hire employees and independent contractors?

If you intend to hire employees or independent contractors in Texas, you must first be aware of the legal requirements. Before you can hire your employees or independent contractors, you must determine their classification. Employees will be entitled to certain legal benefits; however, independent contractors will not. To hire employees, you must first register as an employer with the Texas Workforce Commission. You must also obtain the necessary state and federal tax identification numbers. When hiring employees, you must also comply with Texas labor laws, such as the minimum wage, overtime pay, and workers’ compensation. Hiring independent contractors is a bit more complicated, since you will need to determine that the individual meets the legal definition of an independent contractor. Generally, independent contractors will need to provide a signed independent contractor agreement, a copy of their business license, and proof of their own insurance coverage. Be sure to keep detailed records of employee/contractor payments, wages, and hours worked. Additionally, make sure that you comply with all relevant Texas laws, including those related to taxation and immigration. Finally, you should always consult with an experienced business lawyer to ensure that you are following the law.

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How do I hire employees and independent contractors?

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