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I have a client who I do small jobs for every once in a while. I do not get very much work from them and now they want me to sign an independent contractor agreement. It basically states that I am not an employee and I can't sue them for whatever reason.
Is this something standard? I have been doing work for them to their satisfaction and they pay my invoices and I don't know of any bigger projects coming up.
Not necessarily anything to worry about. Companies often need to cover their asses in terms of employment law and employee benefits. Have a careful read but in essence is relatively standard if you are work g with them on an ongoing basis.
ICA is standard. Not suing them for whatever reason -- def not standard. Read that part over carefully and ask them to take it out or change if if you feel uncomfortable. If you don't have an actual project going on with them, then certainly wait to sign any of that until the next project with them comes along (no reason for you to sign after the fact).
The IRS is going after companies for this. If 75% or more of your income if from one company, then you are legally an employee of that company, in the eyes of the IRS. The fines are quite heavy.
It sucks,really, and puts the onus on the business owner (how am I supposed to know if 75% of your income comes from me?!). They are probably doing that in light of this (the IRS started going after companies in 2013 for this).
The only way around this is the worker becomes an S Corp (not just an LLC) and the business is then paying an entity, not a 'person'.
Stupid and annoying and it may vary from state to state, but that's how I've been advised.
As a bona fide independent contractor with excess of 12 years experience under my belt I have never been asked to sign anything.
- Yeah, but ur UK, he/she is in MD USA. Any legit company in the USA 'should' ask you to sign an ICAfyoucher1
- Ive been n independent contractor for 21 years in the US and have never been asked to do this. But it's not an ureasonable in my opinion.Josev
- It's a simple statement of your relationship. I don't get the not being able to sue thing and am not sure that's even enforceable.Josev
- I think the relationship problem becomes an issue if taxes are due to the IRS from the contractor and the client falls under the IRS's criteria that defines theJosev
- client as an employer.Josev
Does it help them out when they do their taxes and declare you a business expense?
write your life off as a business expense
Don't sign your life away.