From the course: Hiring Contract Employees
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Contract agreements
From the course: Hiring Contract Employees
Contract agreements
While the IRS and other agencies consider contractual arrangements in their analysis, many companies erroneously believe that having a contract solves all problems. Well, not so fast. Once again, the challenge is you cannot contract around the law. The independent contractor relationship should be memorialized in writing. It should discuss factors, such as control, compensation, results, and other factors discussed in this course. For example, most independent contractors cannot be fired at will, like most employees can. They can only be fired for not living up to their contractual obligations. Let me share with you a case of misclassification despite there being an independent contractor agreement. The employer was a car rental agency in a major city with locations downtown and at the airports. The worker performed services as the driver of a shuttle van for the employer under a written contract specifying he was an independent contractor. He was paid a set rate per mile plus an…
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