What must records regarding independent contractors include?

Records regarding independent contractors must include payment history and invoices because this information is essential for both financial tracking and compliance with tax regulations. Keeping a detailed payment history allows businesses to monitor expenses related to independent contractors, ensuring that all transactions are accurately recorded and reported. Additionally, invoices serve as a formal record of the services rendered and the agreed-upon payment terms, which can be crucial in the event of any disputes or audits concerning the contractor's work or associated payments.

While other records such as project proposals or personal identification details might be beneficial or necessary for specific aspects of the contracting arrangement, they are not as critical for ongoing financial and tax obligations as payment history and invoices are. Health insurance information is also not a typical requirement for independent contractors since they are considered self-employed and are generally responsible for their own benefits. Therefore, the emphasis on payment history and invoices is key to proper management of contractor relationships and adherence to financial regulations.