Posted on June 20, 2010.
Independent contractor agreements? 1) Law on employment and independent contractor agreements.
2) What does the contract need to include properly be treated as an agreement independent contractor and not an employment contract.
I am not aware of any specific laws relating to independent contractors. Basically, the contractor is selling his time or a product and the client to purchase.
Now, as to the tax effect - that is another story. Check IRS guidelines for the gory details. The main provisions are that the contractor agrees to provide a service or product that meets customer requirements and the client has no control over the hours and / or working methods and practices of the contractor.
Regarding the IRS is concerned about any type of agreement you if the person doing the work is under regular client work, they are considered an employee and not a contractor. In this case, the customer is responsible for the part of employers to Social Security, Medicare and unemployment compensation.
Hope this helps
Jerry-the-book