Arkansas Jury Instruction - 1.9.4.1 Employee Self-Employed Independent Contractor
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FAQ
A contractor's license in Arkansas is required for contractors and subs if the contract price is over $50,000 on commercial projects and over $2,000 for residential projects.
Arkansas uses an ABC test for unemployment insurance, where in order to obtain independent contractor status under the Employment Security Act, it is necessary that an employer prove each of three statutory subsections: that an individual has been and will continue to be free from control or direction in connection ...
An employee may quit work at any time without liability on the employer's part. Independent Contractors normally pay all of their own business and travel expenses without reimbursement. An independent contractor is legally responsible for job completion and, on quitting, becomes liable for breach of contract.
Misclassification of a worker occurs when a worker is treated as contract labor when the law does not allow for such classification. Arkansas law determines the proper classification of a worker for unemployment insurance (UI) tax purposes.
You can take on projects as a handyman in Arkansas without a license if the cost of the work is less than $2,000. Once you get above the $2,000 threshold, you'll need a license based on the type of work you plan to do.
How to Be an Independent Contractor Step 1) Name Your Business. ... Step 2) Register Your Business Entity. ... Step 3) Obtain a Contractor's License. ... Step 4) Open Your Business Bank Account. ... Step 5) Start Marketing.