It seems pretty simple: Whenever your company uses an Independent Contractor (IC), it gets the Tax Identification Number, contact info and other relevant details. Then, you simply report that info to IRS at year-end, right?
Not necessarily. In some cases, IRS isn’t the only agency employers have to report to when it comes to ICs. Currently, 11 states require businesses that use ICs to report those payment to child support collection agencies.
So, if your company is located in — or hires IC in — these states your A/P department will find itself with some additional reporting responsibilities:
- New Hampshire
- New Jersey, and