Skip to main content

Invoice-Based Payment, Not Timesheets

3:28
18:10
30K views

At 3:28 in

How to understand IRS Regulations- Employee or Independent contractor

What happens here

Subcontractors should provide invoices for their services, not submit detailed timesheets or hourly breakdowns to the client, as an employee would. While they may base their invoice on an hourly rate, the client should not be receiving a record of specific work hours. This reinforces their status as an independent entity providing a service, not an employee being paid for time.

Goal: Establish payment procedures that reflect an independent contractor relationship (invoicing vs. timesheets).

Tools and materials

  • Invoice Forms N/A — Submitting bills for services rendered