Independent Contracting Agreement
Because of the increasing need to downsize, outsource or otherwise trim the in-house workforce, more and more companies are turning to independent contractors. Written independent contractor agreements provide tax benefits because it clearly lets the IRS and your state know that the person you are hiring is an independent contractor rather than an employee, which could save you a lot of grief if your company is audited. It also more clearly spells out the relationship between you and the contractor, so the contractor won't apply for unemployment benefits if you give the proper notice of termination for unsatisfactory work, and for other record-keeping purposes.
Remember, if a worker is considered to be an independent contractor, you do not have the right to control how they do their work. Also, any work done by the indendent contractor remains their intellectual property unless it's specifically indicated in your agreement that what they do is considered "work for hire".
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