Self-employed contractor agreement is an agreement form that is used by self-employed employers when they need to hire a contractor. A self-employed employer may use the agreement form itself or use it as a reference for an existing agreement. Self employed contractors should not be intimidated by this form, and there is no reason to sign one without first reading it thoroughly.
This form covers all the basics, including payments and deductions from pay, expenses such as uniforms and tools needed for work, who will provide what services if something goes wrong with a project on-site, confidentiality between parties, general job responsibilities of contractor and employer mentioned in the opening paragraph of the contract. The contractor can also negotiate any terms that he feels are important beforehand through written amendments.
The contracting parties are the employer and contractor. The contractor can be a sole proprietor or someone who is employed by a company. The self employed person does not have to be the contractor, but it may be his own company which will go about the job of doing the work for the contractor. The person who does the work for the contracting party is called the contractor and can be either employee or owner of a company that does this kind of work. Contractors are independent contractors in legal terms because they are not employees of anyone other than themselves; in reality, they usually do carry out work under direction from their employer, according to his instructions and specifications, while he provides accounting, overall supervision if needed, and some equipment and tools needed on site.
Both parties agree to provide services, products or materials as described under the terms of this contract. One party agrees to pay the other party for these services, and it also provides a schedule of these payments, times when they are due, and any other terms of payment agreed upon. This agreement is written by both parties, with the one who is providing services being referred to as a contractor, while the party paying for services will be known as self employed employer because he has no employees in his company. It is important that self employed contractor be able to make enough money from this contract that it can cover not only the project defined in the agreement but all its expenses like insurance, taxes and customers’ payments.
In addition to the general terms of the contract, both parties should agree on any special terms which are especially important for the particular job. For example, if there is a need for a contractor to move heavy equipment to the project site, there should be some arrangement between the employer and contractor in this agreement to make sure that this equipment can be moved safely and that it will not cause damage to someone or something while it is being moved.
This agreement generally includes all the elements outlined in Title 30 of the WCF. It also covers such things as:
The self-employed contractor’s responsibilities include providing all necessary materials and services needed by the self employed employer, like tools, gadgets, materials etc.
In conclusion, the self-employed contractor agreement is a necessary document that should be signed by both parties involved in the project.