Contractor or employee?
The IRS looks at behavioral control, financial control and the relationship between the parties. It says there is no set number of factors that makes someone an employee or a contractor. If you are unsure, the IRS offers Form SS-8 for an official determination.
| Employee | Independent contractor | |
|---|---|---|
| Taxes withheld by the payer | Yes | Generally no |
| Pay record each period | Pay stub | Invoice and payment record |
| Year-end form | Form W-2 | Form 1099, where required |
Where PayDocs fits
PayDocs pay stubs label the parties as employer and employee, so they fit employees, not contractors. For a contractor, keep their invoices and your payment records; where a Form 1099-NEC is required, PayDocs’ 1099-NEC generator makes it in payer and recipient wording. If you also have employees, PayDocs can make their pay stubs.
A pay stub for someone who isn’t on payroll would describe a payment that didn’t happen that way. PayDocs isn’t for that, and its documents are never proof of income.
Sources
Official sources checked October 7, 2026. This guide explains how pay documents work; it is not tax or legal advice.
