Essential details for an independent contractor agreement

On Behalf of | Mar 27, 2021 | Contract Law |

When a North Carolina company gains a considerable amount of success, it often has more than enough work to go around. Unfortunately, that may mean that there are not enough employees to handle the workload, even if it is just a temporary surge in activity. In such cases, business owners do not have to start saying no or cutting back on tasks. Instead, they could enlist independent contractors for temporary or limited work. However, the proper agreement is essential. 

Creating an independent contractor agreement could ensure that the business owner and worker understand the working relationship. This contract can contain crucial information about the arrangement including: 

  • Information about the hiring side as well as the person being hired 
  • The scope of the work expected from the independent contractor 
  • The type, amount and frequency of compensation provided for the services rendered 
  • The date the agreement goes into effect 
  • Any benefits the contractor will be entitled to 
  • Details regarding the contractor’s responsibility for paying his or her own self-employment taxes relating to the position and that the client will not withhold taxes 
  • When and under what circumstances the contract will terminate 

Of course, depending on the specific arrangement, more terms may be necessary. It may also be required that the parties negotiate any terms that one or both do not find agreeable. Having an outside party assist with negotiations may be useful. 

It is also essential that the agreement comply with North Carolina laws relating to employment and independent contractor agreements. If an agreement includes terms that violate the law, it could prove detrimental to all parties involved, especially if a dispute later arises. As a result, business owners may want to obtain assistance from legal professionals when creating such integral documents.