[ativzzz]

The company I work at pays a lowish rate for our 10 hour take home project, which is also the last step of the interview process. I think this is a great practice, as this shows that we're taking this seriously and are willing to compensate for your time.

[sk5t]

Does your company then issue 1099 forms (assuming US taxation)?

[boring_twenties]

They might not have to if it's a "lowish" (quoting GP) enough rate. I believe the threshold is $500-600 per annum, so if they're paying you $50 per hour for the interview, no 1099 needed.

[SkyPuncher]

$600 is the cutoff for requiring a tax form to be issued.

[benjohnson]

Perhaps be careful - we did this until someone filed for unemployment benefits. They used the fact that we paid them as evidence of employment to the state.