1099 Contractor Agreement
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This Checklist outlines the 7 most often overlooked and ignored terms critical for any 1099 Contractor Agreement. It can help you avoid millions of dollars in potential liability and ensure you protect your most valuable information assets. Or better yet, get our 1099 Agreement above. Our Consultative Form will guide you through each protection and more.
Why have a 1099 Agreement?
A 1099 Contractor is someone who you engage to perform work on behalf of your business, but is not paid W2 wages. A 1099 Contractor is in business for him or herself and works with multiple clients (not just you). The Contractor will decide the method of performing the work, using his or her own tools and equipment. A 1099 Contractor Agreement, if properly drafted, helps establish the independence of the contractor from your business, supporting
your classification of the worker as an independent contractor. Many businesses misclassify their workers as contractors. The US Department of Labor's Wage and Hour Division is responsible for determining if an employer has misclassified its workers as contractors. Misclassification means the worker has been denied important benefits and protections under the federal and state labor laws, including minimum wage and overtime pay. This can result in the employer being liable for unpaid employment taxes and penalties. By default, a Contractor retains ownership over any work product it creates on your behalf, unless the Contractor has executed a 1099 Contractor Agreement that assigns ownership to you. Accordingly, our 1099 Contractor Agreement allows you to retain ownership over your intellectual property. Additionally, you may want to restrict contractors from recruiting your employees and soliciting services from your customers, as well as keeping certain information confidential. You can tailor our 1099 Contractor Agreement to accomplish these important business interests. There's only one step left to take. Get a 1099 Contractor Agreement and experience the difference.