Rotate Legal Colorado Independent Contractors Forms For Free

The IRS requires contractors to fill out a Form W-9, request for Taxpayer Identification Number and Certification, which you should keep on file for at least four years after the hiring. This form is used to request the correct name and Taxpayer Identification Number, or TIN, of the worker or their entity.

Paper 1099 forms: You can order paper 1099 forms from the IRS by calling 800-TAX-FORM (800-282-3676). When filling out the paper form, make sure you get Form 1096 alongside your 1099 form, fill them out and mail them together. Form 1096 summarizes the 1099 forms you plan to issue and should be sent with copies of 1099.

Tax Tips To Avoid Paying Taxes For Independent Contractors Write off your self-employment tax. ... Take business expense deductions. ... Utilize self-employment health insurance. ... Consider tax-advantaged investment accounts. ... Take into account the structure of your business.

In the State of Colorado, plumbing and electrical contractors must carry state-issued licenses, while general contractors have no statewide licensing requirements. That said, it doesn't absolve general contractors from licensing altogether. And all businesses need to register with the state.

You are probably an independent contractor if: You work for more than one company at a time. You pay your own business and traveling expenses. You hire and pay your own assistants. You can earn a profit or suffer a loss as result of your work for the company.

Anyone who is self employed with earnings more than $400 has tax obligations. That means paying Colorado self employment tax of 15.3%. Of that amount, 12.4% is dedicated to Social Security, old-age, survivors, and disability insurance, and 2.9% is dedicated to Medicare or hospital insurance.