In the end, an independent contractor is a person who has his own boss and sets his own rules to justify his operation and production. When a person is paid per project or task, he or she is generally considered an independent contractor. If the person is paid, must comply with a certain schedule and dictates what to do in each facet of his or her work day, he or she is most likely considered an employee. If the payment to the independent contractor is more than $600 in a calendar year, the client must submit Form IRS 1099 to the Internal Revenue Service (IRS) if they pay their taxes on April 15. For additional IRS protection, you should keep for your registration documents that can prove that the person was an employee and unpaid. The burden of proof depends on you to prove it, the IRS will generally assume that the person was an employee, unless you can prove anything else. When you are examined, you want to provide the freelance contract, a list of the contractor`s qualifications as well as all invoices and payment documents. If you are not sure that the contractor you work with would qualify for the IRS as an independent collaborator or contractor, you can apply for a provision by filing an SS-8 form. Consider hiring a lawyer to verify or establish your independent contract contract, especially with respect to restrictive agreements. If you`re using a template like the download sample below, check it carefully to make sure no additions or changes are needed. If you are an independent, it can help you get paid, you should end up with a payment disagreement.
You will look professional if you provide a contract to your customers, if they do not. It also shows that you are ready to commit to work and time agreements. The agreement should be signed by all parties in the presence of a witness or notary (or both persons). In addition, the form should be initialized at the end of each page to mark that each part of the contract has been agreed by all parties. Assistants: The contractor can hire his own assistants, but is for the expenses of his assistants like social security contributions and Medicare The statement on the first point (« I. The contracting parties conclude their declaration by the precise calendar date on which the contractor and the owner wish the agreement to take effect.