Understanding Electronic Signature Legality for Independent Contractor Agreements in the United States

How to eSign a document: electronic signature legality for Independent Contractor Agreement in United States

an independent contractor agreement is a contract that allows a client to hire a contractor for a particular job the agreement may also be known as a 1099 agreement after the number of the internal revenue service form that an independent contractor will be required to file unlike employees independent contractors do not automatically get taxes deducted from their payment and must pay them on their own when income taxes come due the collection of taxes is just one of the many significant legal differences between independent contractors and employees in general independent contracting generally offers greater flexibility but less stability over the last decade or so independent contractor positions have grown much more quickly than the workforce at large in part because of changing technology whether you're an employer or a worker here are a few things to consider about independent contractor agreements before drawing up an independent contractor agreement consider is the work eligible for independent contractor status unfortunately this is not always an easy question to answer employers should keep in mind that just because a worker signs a contract that calls him or her an independent contractor that doesn't necessarily make it so it's the work conditions itself that settle the question federal tax regulations list a few professions like lawyers and court reporters that are always eligible for independent contractor status but for the most part federal law on independent contractors differs to what is known as the common law definition of an employment relationship if the client has the ability to control and direct the work then the worker is probably an employee not an independent contractor also keep in mind that almost all states will have statuses or court cases interpreting the rules for independent contractor status state definitions also tend to focus on the common law idea of whether the client has the ability to supervise the worker but can have different implications for example if a worker meets the state's definition of an employee he or she is likely eligible for state level programs like workers compensation insurance what should independent contractor agreements contain along with identifying the parties and the payment independent contractor agreements should clearly describe the work to be performed and the date on which it is due because the client has relatively little ability to supervise how the work is done this is the place to be specific if you are a client think closely about what will constitute completion the agreements can include other terms such as insurance requirements but clients should consider speaking with an attorney before including non-compete and confidentiality clauses although these terms may be crucial to the client's business model courts and legislations in some states have recently been less likely to find them appropriate for independent contractor relationship worry forms the world's biggest database of legal documents click or tap the link here for your own fillable independent contractor agreement and head to eforms.com for sample forms for more than two dozen different types of independent contractor workers lastly don't forget to subscribe for more videos on employment matters you