Given the following independent contractor agreement: “I agree to provide services to the XYZ Company as an independent contractor. These services include writing software, “trouble shooting” computer network problems, and other tasks that might be assigned. I agree to respond to requests for my services in a timely fashion. I realize that I am free to consult for other companies and to use my own best professional judgment in determining how to provide these services to XYZ Co. I agree that I will be paid at the rate of $35/hr for all time spent performing services for the XYZ Corp.”
With this particular written independent contract I do not think it is well written. When dealing with contractors the contract has to be very specific and detailed. This contract just gives a brief job description of what is expected. In the text it discussed how contractors should be paid one flat rate versus an hourly rate due to not knowing the amount of worked needed to be done each day. At one of my pervious jobs we contractor an IT guy. He was paid a flat rate, but at times he would have to come in to work after hours to fix IT problems such as system data backup, software installment, or if the system was down.. In addition, the IT guy did not have to work a 9-5 schedule he would come certain days or when an event happen dealing with IT. In the above contract they would have ti state how fast and how they want their IT issues address and solved.
I think this contract is good because it is written and contains a lot of what an independent contractor's contract should include.
For most types of projects you hire an independent contractor (IC) to do, the law does not require you to put anything in writing. You can meet with the IC, agreee on the terms of your arrangement, and have an oral contract or agreement that is legally binding. Just because you can doesn't mean you should, however.
Oral agreements invite costly misunderstandings because there's no clear written statement of what the IC has agreed to do, how much you have agreed to pay, or what the two of you will do if a dispute arises.
Even more important, a written independent contractor agreement helps establish a worker's independent contractor status by showing the IRS and other agencies that both you and the worker intended to create a hiring firm/independent contractor relationship, not an employer/employee ralationship.
A written independent contractor agreement should contain at least some of the following terms:
. a description of the services the IC will perform
. a description of how much you will the IC (uaually either a fixed fee for a finished product or a sum based on unit of time- for example, by the hour or by the week.- or achievement of certain benchmarks)
. a description of how and