Whether you’re a freelancer or own a business that retains them, you’ll want to have a written independent contractor agreement in place.
And not just any agreement.
You’ll want a business contract that specifically favors you in its terms and conditions while treating the other party fairly.
In addition, you’ll want an independent contractor agreement that makes it clear that the work is being done as a contractor instead of as an employee.
And just stating that fact isn’t enough.
Because there are certain provisions that should be included in just about every independent contractor agreement you sign that reduce the risk the IRS or a state government will consider the work to be employment.
Equally important, there are certain contract clauses that should never be included in the agreement in order to prevent the contract from being construed by the government as an employment agreement regardless of how you title the legal document.
What’s the danger of reclassification as employment?
Among other things, taxes, fines, worker’s comp, unemployment comp, and employer contributions to employee benefits (e.g., retirement plans, paid time off, etc.).
If you need help with an independent contractor agreement that’s designed specifically to protect you and your business, it’s time to schedule a phone consultation with Business Lawyer Mike Young.