How to Construct an Independent Contract Agreement

Independent contractor agreements should be as detailed as possible.

Independent contractors are similar to employees, but the employment requirements are slightly different when filing taxes with the state and federal government. When drafting an independent contractor's agreement, your can format it however you wish, though certain parameters and information within the agreement should be listed. You can also hire an attorney to look over the contractor agreement after it's created to ensure the terms are legal.

Instructions

1. Create a section that lists your company name, and states that you are entering into an agreement with the independent contractor's name or company.

2. Draft another section that lists the compensation that your company will provide to the independent contractor. Be sure to specify the terms such as an hourly rate or a rate upon completion as well as how payments will be made, and by what date. You can also use this section to include any materials or services that you or the contractor is responsible for providing.

3. List the specific individuals that will handle the tasks and services that you require, if applicable. For example, some independent contractor agreements may list the name of the key contractor, his title and what role the individual will play in completing the job.

4. Draft a section that informs the independent contractor that she will not receive any benefits from the company such as health or retirement plans or stock options. The independent contractor should also be aware that you are not responsible for paying unemployment insurance, state or federal withholding, Medicare or Social Security benefits.

5. Ensure both parties know how damages will be remedied so the independent contractor is aware of how the problem should be fixed, if one occurs. For example, if you are hiring an independent contractor to remodel your bathroom and you provide the tile or fixtures, the contractor is responsible for replacing them at his expense if damaged.

6. Include a section that lists any terminations, and what behaviors, duties or lack thereof will cause termination. Ensure you are as detailed as possible about how final pay will be given as well as the method in which you choose to terminate the employee. The independent contractor can be terminated via mail, in person or over the phone based on the terms you specify.

References

• EmployeeIssues.com: Independent Contractor Agreement
• Small Business Notes: Sample Independent Contractor Agreement
• Nolo: Put Your Independent Contractor Agreements in Writing