Do entities hiring independent contractors or subcontractors have to report new hires? Do independent contractors or subcontractors have to report new hires?
Entities do not have to report new hiring of independent contractors or subcontractors. However, entities must determine whether or not the individual is in fact an independent contractor/subcontractor or whether the individual is really an employee. Entities must use the test and factors discussed in question 1 of this section (concerning the definition of an employee) to determine if the individual is an employee whose hiring must be reported. Although an independent contractor or subcontractor may not be an employee of the entity which hired him or her to perform a particular job function, he or she may be his or her own “employer” and/or an “employer” of others that may be required to report new hires as an employer under section 453A. The contractor must determine whether the legal relationship of employer and employee exists to determine if he or she or others hired are employees; i.e. does the person for whom the services are performed have the right to control and direct an ind
