Why should a hiring manager care about validating contractor workers status?
To appropriately demonstrate that the independent contractor is set up and operating as a business. In an audit, the burden of proof is on the company. The first thing an auditor asks is to see the evidence of the contractor’s independent status. Audits can go back 3 years, making it unlikely the contractor is available or motivated to then provide this evidence. Rebuilding / recreating these files is not just costly, but almost impossible after the fact. The information is kept in strictest confidence and released only for audit defense.
