SpareHire recommends executing a consulting agreement for any large projects (greater than $400 in value). This agreement outlines the scope of the project, specifies the agreed-upon compensation, protects the confidentiality of the Organization and limits the liability of the Professional. The more detail you can put into this, the smoother your project will be.
Please feel free to use the Agreement above as an example and customize it to fit your project (by editing the text highlighted in yellow). Keep in mind that this is just a sample and you should seek legal advice before signing legal documents of any kind.
In the past, independent contractors have used Form W-9 to alert their clients to send them a Form 1099-MISC, which they then used to report independent contractor income to the IRS.
Due to recent changes in tax laws, the W-9 / 1099-MISC process is no longer required, so long as payments between employers and contractors are sent via a 3rd party settlement network (such as SpareHire's payment processor, Stripe). As all project payments are made through SpareHire, W-9s and 1099-MISCs are no longer required for SpareHire projects.
Instead, a Form 1099-K will be issued ONLY to contractors who earn more than $20,000 AND receive over 200 individual payments through SpareHire in a calendar year. If a contractor falls into this category,Stripe, will automatically issue the Form 1099-K to the contractor. For more information, please visit the IRS website or speak to an accountant.