Independent Contractor Onboarding Checklist for the US
This is what most US businesses collect from an independent contractor before they start. Not every item applies to every job. A freelance designer and a roofing subcontractor need different paperwork, so cut the list to suit the work.
It also covers the question that sits underneath all of it: whether the person is really a contractor at all.
1. Check they really are a contractor
Do this first, because the rest of the list assumes the answer is yes. A contract that says "independent contractor" does not settle it, and neither does paying them on a 1099. There are three main tests, and they don't all agree.
The IRS common-law test. The IRS looks at three categories of evidence: behavioral control (do you control how the work is done?), financial control (do you control the business side of the job?) and the type of relationship (written contracts, benefits, how permanent it is). The key, in the IRS's words, is "the extent of the right to direct and control the worker." If you get it wrong, the business can be held liable for employment taxes for that worker. Either side can file Form SS-8 to ask the IRS for a ruling.
The Department of Labor test under the FLSA. This decides who is owed minimum wage and overtime, and it is in flux:
- A 2024 rule set out a six-factor "economic reality" test. It is still the regulation on the books and remains in effect for private lawsuits.
- Since May 2025, the DOL no longer applies the 2024 rule in its own investigations. It uses its older Fact Sheet #13 guidance instead.
- In February 2026 the DOL proposed rescinding the 2024 rule and returning to a test built mainly on two factors: control over the work, and the worker's chance of profit or loss. Comments closed on April 28, 2026. As of early November 2026 a final rule has gone to the White House for review but has not been published. Check that page for the current position.
State ABC tests. Several states set a stricter bar. California's, from AB 5, is the best known. A worker is an employee unless all three of these are true:
| The worker... | |
|---|---|
| A | is free from your control and direction in doing the work, under the contract and in fact |
| B | does work outside the usual course of your business |
| C | is customarily engaged in an independently established trade or business of the same kind |
Prong B is the one that catches people out. A cleaning company hiring "contractor" cleaners will struggle to pass it. Some occupations are exempt and use an older test, so check the state's employment status portal.
The penalties are real. In California, willful misclassification carries civil penalties of $5,000 to $25,000 per violation, on top of unpaid payroll taxes, wages and workers' compensation.
This section is general information, not legal advice. If a classification is borderline, ask an employment lawyer or accountant before the work starts.
2. A signed independent contractor agreement
The agreement doesn't make someone a contractor, but it records the deal. At a minimum it should cover the scope of work, how and when you pay, who supplies tools and materials, insurance requirements, and who owns what they produce.
Write it to match how the work will actually run. An agreement that says "contractor controls the method" next to a schedule of mandatory shifts is evidence against you on the control test.
3. Form W-9
A Form W-9 gives you the contractor's legal name and taxpayer identification number (an SSN or EIN). You keep it on file. It is not sent to the IRS.
You need it to file Form 1099-NEC. For payments made in 2026, the 1099 reporting threshold is $2,000, up from $600. If a contractor won't give you a TIN, you may have to backup withhold 24% of reportable payments.
A W-9 carries a Social Security number, so treat it as sensitive. Form W-9 for contractors covers it in full.
4. Certificate of insurance
Most businesses ask for proof of general liability insurance before a contractor starts, and many contracts require it. Ask for the certificate, note its expiry date, and check that the limits and the named insured match what your contract asks for.
A certificate shows the policy at the moment it was issued. A policy that lapses mid-job is the usual gap. Certificate of insurance tracking covers what to check and how to stay ahead of renewals.
5. State contractor or trade license (where the work needs one)
Construction and regulated trades are licensed by the state, and sometimes by the city or county as well. Three examples:
| State | Who licenses | What it covers | Check it |
|---|---|---|---|
| California | Contractors State License Board (CSLB) | Construction work, unless the job is under $1,000 in total, needs no permit and uses no hired workers | CSLB License Check |
| Florida | DBPR Construction Industry Licensing Board | Building, structural work, plumbing, air conditioning and other trades; some trades such as painting are licensed locally | Verify a License on MyFloridaLicense.com |
| Texas | Texas Department of Licensing and Regulation (TDLR) | Electrical work, with no grace period while a license is pending | TDLR License Search |
Collect a copy with its expiry date, then check it on the state's public lookup. A photo of a license card shows what the card says, not whether the license is current today.
6. Business license
Many cities and counties require a general business license, separate from any trade license. As the SBA puts it, local governments set their own registration, licensing and permitting rules, and they vary by place and industry. Ask for it where the work or the location requires one. A contractor holding their own business license is also part of the picture on the "independent business" question.
7. Workers' compensation certificate or exemption
Workers' comp is run by each state, through state workers' compensation boards. If your contractor has employees, ask for their certificate and its expiry date. A sole contractor with no employees may have nothing to show you.
Some states issue a formal exemption instead. In Florida, a construction business officer can hold a Certificate of Election to be Exempt, valid for two years and searchable online. If your contractor's workers aren't covered, ask your state board where that leaves you, because the answer differs from state to state.
8. Payment details
Bank name, ABA routing number, account number and account type, for ACH payments. Confirm any change of bank details by phone on a number you already hold, not one in the email asking for the change.
Treat account numbers as sensitive. They shouldn't sit in an inbox or a shared spreadsheet.
9. Site safety orientation
On a shared site, safety duties don't stop at your own staff. Under OSHA's multi-employer citation policy, the employer who controls a site can be cited for hazards affecting another employer's workers. A short orientation covering site rules, hazards, emergency procedures and who to report to is the usual answer. Record the date each person completed it.
What WorkZerk does and doesn't do
WorkZerk keeps the paperwork side of this in one place:
- Each contractor gets one private link and sends everything from their phone, with no account or password.
- They sign your agreement on the same page, by typed name or drawn signature.
- Certificates and licenses carry an expiry date, saved to the contractor's contact record so they are never asked twice.
- WorkZerk's AI check reads the expiry date on an upload and flags it when it differs from the date typed in. You approve every document.
- WorkZerk can email the contractor before a certificate expires and ask for the new one.
What it does not do: WorkZerk doesn't decide whether someone is a contractor or an employee, verify a license with the state, confirm coverage with an insurer, file 1099s or pay anyone. Those stay with you and your accountant.
Setting it up in WorkZerk
1. Turn on two-factor authentication
Asking people to upload documents needs two-factor authentication on your account. Set it up under Account, then Two-factor authentication (opens in WorkZerk in a new tab).
2. Add the US contractor pack
Open Requests (opens in WorkZerk in a new tab), click Request packs, and open Start from a template. Pick United States and add Contractor onboarding (United States). It asks for:
- Form W-9, required, marked sensitive, with a link to the IRS page.
- Certificate of insurance, required, with an expiry date.
- Business license and Workers' compensation certificate, both optional, both with an expiry date.
- Bank name, routing number, account number and account type, with the account number marked sensitive.
The three certificates save to fields on the contact record, so they count across every portal. Starter request packs lists the full pack.
3. Add your agreement
Write your contractor agreement in the Terms library (opens in WorkZerk in a new tab), then add a Terms request to the portal with a typed name or drawn signature. Each acceptance is tied to the version the contractor read. If your agreement is already a PDF, use a Sign PDF request instead.
4. Add the licenses your trades need
For a state trade license, add an Upload request with Require expiry on. Put trade-specific asks inside a Section limited to the people it applies to, so a painter isn't asked for an electrical license. Add a Tasks request for the site orientation if you run one. A contractor compliance walkthrough covers each piece.
5. Send the links and review
Add contractors to the portal and send each their link, or share a self-registration link. Uploads wait under Needs review on Requests (opens in WorkZerk in a new tab). Check each one, look the license up on the state's site, then approve.
6. Switch on the expiry reminders
Open Automations (opens in WorkZerk in a new tab) and switch on Document expiring reminder and Document expired reminder. Both start switched off. The expiring reminder goes 30 days before expiry by default, and stops once the new certificate arrives.
7. Check who is covered
Open Requests (opens in WorkZerk in a new tab) and click Document compliance. Each contractor shows as current, expiring, needs review, expired or missing for each document. Use Download CSV when a client or insurer asks for a register. See Document compliance.
Getting started
Start a free WorkZerk trial at workzerk.com, then work through the steps above. If you get stuck, the getting started guide walks through a first portal end to end, or email us at [email protected].