Create a file for each IC you hire. Keep these files separate from the personnel files you use for employees. Each file should contain:
- the signed final IC agreement and copies of any interim drafts
- the IRS W-9 form signed by the IC containing the IC’s taxpayer identification number
- all the documentation provided by the IC, such as proof of insurance, business cards and stationery, copies of advertisements, professional licenses, copies of articles of incorporation
- all the invoices the IC submits for billing purposes, and
- copies of all 1099 forms you file reporting your payments to the IC. (See After the IC’s Services End.)
Keep your IC files for at least six years.