South Carolina Collections Agreement - Self-Employed Independent Contractor

State:
Multi-State
Control #:
US-INDC-237
Format:
Word; 
Rich Text
Instant download

Description

Employer hires a collections specialist on an independent contractor basis to provide collection services for employer as specified in the contract.
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FAQ

A 1099 employee is a US self-employed worker that reports their income to the IRS on a 1099 tax form. Freelancers, gig workers, and independent contractors are all considered 1099 employees.

There are three key documents you need from an independent contractor: a W-9 form, a written contract, and documentation of payment information. In case of an IRS audit, it's important to keep thorough documentation on your independent contractors. Learn more about each form you need, below.

Doing Work as an Independent Contractor: How to Protect Yourself and Price Your ServicesProtect your social security number.Have a clearly defined scope of work and contract in place with clients.Get general/professional liability insurance.Consider incorporating or creating a limited liability company (LLC).More items...?

A person can attempt to be indemnified (held harmless) for doing their duty or acting within the scope of their job.

Simply put, being an independent contractor is one way to be self-employed. Being self-employed means that you earn money but don't work as an employee for someone else.

Becoming an independent contractor is one of the many ways to be classified as self-employed. By definition, an independent contractor provides work or services on a contractual basis, whereas, self-employment is simply the act of earning money without operating within an employee-employer relationship.

Indemnification is a concept whereby one party contractually agrees or is otherwise legally obligated to bear the financial risks of another party. These parties are respectively known as the indemnitor and indemnitee. The construction industry relies on indemnification clauses to manage and transfer risk.

Every independent contractor agreement should feature an indemnity clause. The purpose of this clause is to ensure that the independent contractor will be held liable for any damage or injury resulting from the independent contractor's work performed under the contract.

The definition of an independent contractor has been developed by case law in South Carolina as one who: Exercises independent employment. Contracts to do a piece of work according to his own methods. Is not subject to the control of his employer except for the result of the work.

The general rule regarding independent contractors states that a person who hires an independent contractor cannot be held vicariously liable for the wrongdoing of the independent contractor. (NYPRAC-TORTS § ).

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South Carolina Collections Agreement - Self-Employed Independent Contractor