While contractors are not technically employees, they can still be covered under your workers compensation policy. In some cases, contractors may be covered if they are working on your property and performing tasks that are integral to your business. It's important to keep track of all contractor information, including their hire dates, job titles, and job duties.

As a business owner, it is important to accurately report your income and pay the correct amount of taxes. If you have paid contractors or other vendors a total of $600 or more during the year, you are required to file Form 1099 to report this income to the IRS. Failure to do so can result in penalties and interest charges.

A certificate of insurance is a document that verifies the existence of an insurance policy and provides important information about the coverage it offers. By the insurance from a contractor, you can ensure that they have the necessary coverage to protect your business in the event of a claim, lawsuit or injury onsite.