Do You Need A California Independent Contractor Agreement?

by Tyler on March 2, 2008

If you use the services of an independent contractor or plan to, then you should have an independent contractor agreement in place.

Do you?

If not, I suggest you have your contractor sign one.

Business owners often will classify service providers as independent instead of employees. Why? well there are less forms to file, less taxes to pay and makes you feel like you can terminate a contractor with less hassle.

The big problem with this is the contractor has to meet a set of criteria to qualify as an independent contract. If they don’t qualify, the problems can be huge..back taxes, unemployment payments, penalties. In short, it can get yucky.

One key criteria is having an agreement in place with the contractor covering issues like:

    They are independent
    They are responsible for their own taxes
    They are responsible for their own insurance

This is just some of the items in a typical agreement but I am sure you get the idea.

Do you see why having a California independent contractor agreement is important?

Keep in mind, the agreement itself doesn’t determine whether you qualify but it’s a darn good start.

So, while it’s fresh on your mind: Get One Now —> California Independent Contractor Agreement

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