(if you aren’t sure about the difference between an independent contractor and an employee, check out this post.) whether you are the independent contractor or you are hiring a contractor, you need to ensure that you have a solid contract to define your relationship. we recommend that you include that the party will be an independent contractor and is responsible for payment of all taxes. this may also include who is responsible for providing materials/equipment, an acknowledgement that the contractor is not eligible for employee benefits, and whether or not the contractor is responsible for payment of expenses. the independent contractor is also responsible for payment of all taxes, so payment will be made in full, without deductions for any taxes or employee benefits.