Hiring independent contractors is a common practice for many business owners, but you may not know fully understand how an employment law attorney can design Independent Contractor agreements to protect your company. Considering hiring contractors to complete tasks can save your business money. However, ensuring each contractor is properly classified as an independent contractor and then signs an independent contractor agreement is key in protecting your business. With the help of an attorney, you can understand and reap the benefits of IC agreements.
Not an Employee
When your contractor signs the IC agreement, they are agreeing to a number of terms that outlines the relationship between the independent contractor and the company. The signing of the contract ensures your IC will not receive benefits or treatment that is given to traditional employees of your company. Keep in mind that simply having them sign an independent contractor agreement does not make them an independent contractor. That is determined by a multitude of factors. However, the signing of the contract ensures your IC will not receive benefits or treatment that is given to traditional employees of your company and properly outlines the relationship.
Overtime or holiday pay, health benefits, life insurance, sick pay, or vacation time will not be offered to your independent contractor. In addition, the contractor will work for a designated wage or fee without any promise of ongoing, continuous, or permanent work.
IC Agreement for Taxes
Many business owners worry how independent contractors will affect their tax benefits. Fortunately, ensuring your contractors understand they will be responsible for their own taxes is a key part of an independent contractor agreement.
Your employment law attorney will design an IC agreement that explains tax benefits and requirements to both you and your contractor.
Your business’ IC agreement should acknowledge the no-soliciting rule. Past, current, and future independent contractors should not try and solicit business from your current customers or clients. If it is found that they do, they may be subject to legal ramifications.
Be sure to work with your attorney to determine the best course of action if an independent contractor breaks the no-soliciting agreement.
Before utilizing the services of an independent contractor, contact Simon | Paschal at (972) 893-9340 to learn how an employment law attorney in Dallas, TX can help guide you in your hiring process.
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