List of Documents to Keep in Independent Contractor Files

In general, while an employer does not need to collect all of the documents listed here, the more documents employers can gather, the stronger their case will be in case of an investigation by either the IRS, the Department of Labor, or a state's unemployment insurance office.

• A copy of the independent contractor's incorporation certificate (if applicable)
• A copy of the independent contractor's certificates of insurance under which it has borne the expense
• A copy of the independent contractor's Federal Employer Identification Number (FEIN)
• A copy of the independent contractor's IRS Form Schedule C, Sole Proprietorship, Profit and Loss Statement (Business Deductions)
• Copies of the 1099 forms if used
• Copies of 1099s from other companies (if available) because this shows that the worker has entered into contracts with other companies and would make a stronger case against employee status
• File memos in which the contractor has listed the other companies for whom he or she works and when the services were performed
• Copies of business listings from the Yellow Pages showing the business name, address, and phone number
• Paper or electronic copy of the contractor's Internet Home Page if used to conduct business, or record of Internet Home page address
• Copies of invoices with the worker's company name
• Independent contractor's business card and letterhead
• Copies of any advertisement of listings from papers, in the business name of the contractor
• Copy of the contractor's registration with the state as published in a newspaper
• Unemployment insurance number of the contractor issued by the state (if possible)
• Negotiation notes from contract negotiating sessions
• Memo delineating each job refused or rejected and reasons why
• Proof of ownership of vehicles, equipment, tools, etc.
• Information on the independent contractor's business expenses, such as rent, etc.
• Information on the independent contractor's assistants, including employees
• Proof of independent contractor's membership in professional/business organizations