We’re officially in a gig economy. If you want to get work done for your marketing business, consider bringing in a contractor instead of hiring someone full-time or part-time.
When you bring on an independent contractor, you’re going to need an independent contractor agreement.
Writing an independent contractor agreement is simple, all you need to do is make sure you include some important information.
Curious about the right way to write a contractor agreement? Read on to learn what you need to have.
Creating a Solid Independent Contractor Agreement: 5 Tips
If you think you need to create a W-2 instead of an independent contractor agreement, use this site. It’s important to make sure that you’re submitting the right paperwork to the IRS.
People that need an independent contractor agreement have come to the right place. This article is for the people doing the hiring, but this is still a great guide for anyone that’s a 1099 independent contractor.
Whether you’re drawing up an agreement for an employee or yourself, make sure your agreement has these 5 important things.
1. Project Description
This can be a brief paragraph, but it can save you a fight in court in case there are any disputes over the work expected or provided.
The project description should include the specifics of any work that’s expected to be done on the project. This will help to make sure that everyone is on the same page in terms of the scope of the project.
2. Statement of Relationship
This can be easily looked over, but it’s important for defining roles. The statement of your work relationship can help prove someone’s work status for tax or financial purposes and can protect against employee misclassification.
Something simple that just states, “(Name) is an independent contractor and not an employee of (business)”.
3. Responsibilities of Each Party
This may sound strange, but this is actually different from the project description and statement of relationship. This part of the contract outlines responsibilities for everyone involved in the project.
Business owners should pay special attention to parts that involve other departments. If anyone from your design, development, or other internal team are involved, be sure to make sure their responsibilities are outlined in the agreement.
This can help make the project run smoother, and ensure that nobody has the wrong idea about what should and shouldn’t be done.
4. Termination Conditions
You never know what can happen during a working relationship. If either party is unhappy, you’ll want to have a clearly outlined plan for ending the working relationship.
Termination conditions for independent contractors are meant to protect both the business and the employee. Take time to discuss what an ideal exit plan on both sides will look like.
5. Confidentiality Clauses
Asking an independent contractor to sign a non-compete may seem like a smart idea, but it could severely limit their ability to work and could chase away promising workers.
Instead of asking them to sign a non-compete, go down the confidentiality clause route. A confidentiality clause can protect your most important information and secrets.
If you’re concerned about them reaching out to clients to poach them, include language that specifies that they can’t reach out to clients for a specific amount of time after they’ve stopped working for you.
If you remember these 5 points when you write an independent contractor agreement, you’ll create a solid agreement that can protect the contractor and your business.
Want to learn more about the right way to run your business? There’s a lot of helpful content on our blog. Be sure to check out the marketing category to learn more helpful tips.