INDEPENDENT CONTRACTORS OR EMPLOYEES
1099 v. W-2
In today’s economy, businesses tend to engage independent contractors (ICs) rather than employees to avoid the costs, taxes, and bookkeeping formalities of hiring employees. This strategy, however, carries significant risks because state and federal agencies enforce strict legal guidelines and aggressively audit for compliance. For many businesses, an audit can be devastating because businesses that mis-classify workers are assessed substantial back taxes and penalties.
Who needs an Independent Contractor Agreement?
- Businesses or entrepreneurs who are looking to hire or be hired as an independent contractor;
- Businesses who want to make sure that the company owns any intellectual property that is worked on by the independent contractor for the company;
- Businesses or Individuals who are looking to clear any confusions about each party's rights and obligations when it comes to hiring a new team member.
NEGOTIATING AN INDEPENDENT CONTRACTOR AGREEMENT
Most businesses focus mainly on costs when negotiating independent contractor agreements. Although costs are important, a skilled business lawyer will understand the important ramifications of contractual provisions that initially seem insignificant to most businesses. For example, a poorly drafted independent contractor agreement may not protect your confidential information and may force you to pay for work that was not done correctly.
CONTact A skilled business lawyer to help you reach your goals
Our business law firm can help you audit your current independent contractor agreements, negotiate new agreements, and represent you in a claim for breach of contract. Please give us a call at 360.630.3635.