Independent Contractors If you have independent contractors, it is critical that you give them a 1099-MISC at the end of the year if you have paid them more than $600.  Get each independent contractor to fill out a Form W-9 before he or she begins work so you will have their name, address and social security number. Form W-9 If you aren't sure if you have an indpendent contractor or if you should really be hiring an employee, click below.  If you incorrectly classify a worker as an independent contractor, the IRS can reclassify the individual as an employee, meaning you will face very harsh payroll tax penalties for not filing and paying payroll taxes on time. Employee or Independent Contractor?