Independent Contractor Agreement 

An independent contractor agreement can help you hire someone to complete a project while protecting both parties 


While it’s common for businesses to hire independent contractors for temporary or sporadic projects, the repercussions for incorrectly classifying a worker as an independent contractor are numerous and substantial. It’s important for an employer to detail the relationship with an independent contractor agreement in order to avoid a costly dispute down the road. Employers have a distinct advantage in classifying workers as independent contractors. The most important reason is that it saves money.

For employees, an employer is required by law to pay for unemployment, Medicare, and social security taxes for each employee; for independent contractors, employers escape from having to pay these taxes. Navigating through the murky waters of accurate employee classification can result in a shipwreck. Companies are recommended to work closely with an attorney to ensure proper classification as either an independent contractor or an employee and effectively put it into writing.   

How legal advice can help

Hiring a good lawyer will provide vital assistance in almost every aspect of your business. 
Confirm the legality
Independent contractors are an especially thorny area that has resulted in confusion and expensive litigation for many employers. An attorney can assess if your worker should be treated as an independent contractor or employee.
Helpful tips
The independent contractor agreement is just the beginning of the working relationship. An experienced employment lawyer will provide you with some guidance on how to maintain the proper employment classification.
Persuasive with the IRS
If an employer ultimately faces problems regarding employee classification then a court and/or the IRS may be persuaded if you used an attorney while setting up the contract.
Prevent future issues
Receive proactive legal risk management that will help you avoid problems before they arise by tapping into senior attorneys with considerable business experience.

What’s included

Attorney Consultation
Custom Drafted Independent Contractor Agreement

Average Costs

The cost can vary based on a number of different things.
To get an exact price for your business click here.

$500 - $2000

*figure show is an average. costs may vary.

Common Questions

As an employer, do I need to put an independent contractor agreement in writing?
Not necessarily but you’re exposing your business to risk without one. An independent contractor agreement clears up any confusion or uncertainty as to the terms and the classification of the hiring. Also, it can help in court or with the IRS in demonstrating the independent contractor relationship.
Should I classify my worker as an employee or independent contractor?
It’s hard to say without knowing more. The following factors have been used by the Supreme Court in the past for determining employee classification:

The degree of control an employer has over the work - the more control an employer has over how a worker performs work will favor an “employee” designation

The extent to which the worker can or does provide similar services to other businesses - working exclusively for one employer will lean in favor of “employee” status

The permanence of the relationship - established relationships will suggest an “employee” designation

Investment - the more tools (e.g., phones, computers, software) an employer provides to a worker the better chance of “employee” status

What can happen if I wrongly classify an employee as an independent contractor?
You can be on the hook for back wages and back taxes with interest and penalties. Criminal sanctions are also a possibility. Lastly, if an independent contractor is injured at work then an employer can face a personal injury lawsuit, as opposed to a claim for worker’s compensation. 
What terms should be in an independent contractor agreement?
Each agreement is different, but most agreements will contain the following the terms and provisions: the specific work to be completed, the agreement’s duration, a satisfaction clause, the payment arrangement, an intellectual property (IP) assignment, a confidentiality clause, various disclaimers, and an explanation of the independent contractor relationship.
I’m an independent contractor - can an attorney on LawTrades review my employer’s agreement?
Yes an experienced employment attorney can review the agreement for a low flat rate.


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