Sample Independent Contractor Agreement Word Document
Use the template and write it yourself or look for a lawyer. After the parties have completed and completed the document, it is now ready to be signed. 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. Once an LLC, corporation or partnership has been created, it will provide additional documentation in the form of the following information on ownership, individual roles and other rules for the business: The article as “11th Insurance” will focus on defining the insurance requirements that the independent contractor must meet in order to maintain that agreement. To provide this definition, you can check both or none of the box instructions in this item. If the “car liability insurance” is to be managed by the contractor for each vehicle (owned or not) that must perform or perform this task, mark the first box at cost. This statement requires you to set the minimum “Combined Single Limit Per Occurance For Bodily Injury And Property Damage” in the blank line provided. If the independent holder is required to take out “full or commercial general liability insurance,” check the second box to be contributed and write down the minimum combined amount in the policy that he must actively keep. After opening the agreement with the corresponding editing software, look for the first article in which the information must be reported. Here, in “Me. The parties “, we will document the independent contractor and the client involved in the employment contract. The bold “Customer” label introduces this section, in which the party must be fully identified, which agrees to pay the independent contractor a specified amount of money in exchange for the completion of a project, task, work or production.
Write down the customer`s full name in the first empty line after this label, then write down the first line of their official postal address in the empty second line. If the contractor`s compensation is submitted in exchange for each service provided by the contractor, check the second option of box to be contributed and check the dollar amount to be paid for each service on the empty line contained in this selection. Another common method of payment is a pre-set commission. If the independent contractor is paid by commission, select the third box to cost. A pair of empty lines that are added to this option will require your report on how the Commission is made. Be sure to record the specific percentage that sets the commission and what percentage that percentage is applied to. The final decision in this section allows you to define the calculation of the remuneration of the independent contractor. If none of the previous three instructions is an accurate description of this process, you must select the last option (“Other”) and directly indicate the pay rate for the empty lines provided. An independent contractor pays quarterly or annual taxes for federal income tax, public income tax and self-employment tax on all net earnings after deduction. Deductions can be defined as all eligible expenses incurred by an individual in the course of contract work, such as leasing. B of space, equipment purchases and transportation costs.