Legal Question in Business Law in New Jersey

No, you can have an independent contractor paid hourly. Therefore, you can use a time clock or online device to record their time. Nevertheless, be careful about the direction and control test and performing work on premises test used by the IRS and most state taxing agencies.

You should have a written agreement with your sub-contractor and you should require submission of bills. As a tax attorney for over 30 years, I have handled hundreds of State and Federal audits on this issue. As a business owner, you need to set-up the independent contractors carefully following the tax laws and regulations. You need a good attorney.

I hope this helps!

Ron Cappuccio

http://www.TaxEsq.com

856 665-2121