Below are eight important points to consider including in an independent contractor agreement. Define a Scope of Work. Set a Timeline for the Project. Specify Payment Terms. State Desired Results and Agree on Performance Measurement. Detail Insurance Requirements. Include a Statement of Independent Contractor Relationship.
New York does not require most contractors to hold a license on the state level.
Ing to Boundy (2012), typically, a written contract will include: Date of agreement. Names of parties to the agreement. Preliminary clauses. Defined terms. Main contract clauses. Schedules/appendices and signature provisions (para. 5).
Form W-9. The IRS requires contractors to fill out a Form W-9, a request for a Taxpayer Identification Number and Certification, which you should keep on file for at least four years after the hiring. This form is used to request the correct name and Taxpayer Identification Number, or TIN, of the worker or their entity ...
While independent contractors are not eligible for workers' compensation in New York, whether you are considered an “employee” for workers' compensation purposes can be a contentious legal issue. Moreover, even if you aren't an employee, you may still be able to get other forms of compensation for an on-the-job injury.
Independent contractors are protected against employment discrimination and harassment under the NYCHRL.
Each state currently has a unique test used to determine worker status. States like California and the Department of Labor use the ABC Test to determine worker status, while Common Law is the method for both New York and the IRS. Still, some states have other methods of determining worker status.
The FCA covers most employers hiring for jobs in New York City and covers most jobs/independent contractor positions (see end of this sheet for exceptions).
The NYSHRL protects many individuals whose status is not that of a traditional employee, including interns, independent contractors, consultants and people who provide services under a contractual relationship.