How to Customize an Independent Contractor Agreement Form Template

Have you ever heard anyone say, “I love paperwork!” without rolling their eyes 🤔? Probably not! That’s because paperwork is one of the boring but necessary parts of life. Personalizing an independent contractor agreement form template is no exception; nobody does it for fun, but it must be done nevertheless.

If you’d rather leave this to the experts, go ahead and skip to our independent contractor agreement form template, which will be customized for you by legal experts. Otherwise, read on!

Any independent contractor agreement form template mainly outlines the relationship🤝 between the employer (prospective client) and independent contractor (freelancer). Determining what to include as you customize a template—or whether the template you found is any good in the first place—may prove a challenge at times for a contractor or hiring company. Whether you’re looking for work or looking to hire, here’s what you need to know. 

Do I Even Need an Independent Contractor Agreement Form Template?

An independent contractor agreement is a legal document 📋 between a freelancer and a company. It helps build a contractor relationship for both parties during their joint venture. As such, a contractor agreement has significant benefits to both the contractor working for clients and employers hiring freelancers! Here are some of them:

  • This entire agreement form ensures that the prospective client receives the desired work while the independent contractor receives payment💸 for the work completed. It nurtures a good independent contractor-client relationship and offers room for great business relationships.
  • Both parties can review this form during or after the project to clarify expectations or contest improper behavior. 
  •  If an employer wants to hire freelancers for short-term services, a contractor agreement clarifies the independent contractor status of the freelancer.
  • This document has great significance during Internal Revenue Service (IRS) interactions and audits. Businesses have reporting requirements, while freelancers may have income tax obligations. This paper trail can help clear things up if there’s any trouble.
  • If something goes wrong and there’s a breach of contract, property damage, or another issue, the independent contractor contract can come in handy in court to help the wronged party get compensation. 

Convinced? Great! Now that that’s taken care of, let’s move on to when you’ll need such a form. 

Who Should Use an Independent Contractor Agreement Form Template?

Individuals who should find and use an independent contractor agreement form template include:

  • A client seeking the services of an independent contractor
  • A company seeking to hire an independent contractor
  • An independent contractor or freelancer

In the case of a company hiring independent contractors, the company in most instances takes the full responsibility of initiating the contract 🗒. However, that’s not a hard and fast rule. The contract can come from either party! An independent contract worker may submit📝 a project proposal to potential clients, who then initiate the contract. Alternatively, the client may send their proposal to the independent contractor, who then agrees to commit to the given array of projects. 

Static Sections of an Independent Contractor Agreement Form Template

To develop a clear and concise independent contractor agreement, you need to keenly address each element. Some sections of a contract template will apply to pretty much all companies or clients you work with. You can probably leave these sections of the template as-is, but you should make sure they’re accounted for.

Benefits Exclusion

This section basically acknowledges that the freelancer is, in fact, a freelancer. It will clarify that the freelancer doesn’t get the following:

  • Employee wages common with regular employees
  • Employee benefits such as health insurance or other health benefits, paid time off, unemployment benefits from the business, a liability insurance policy reserved for employees, workers compensation fund payments reserved for employees, and the like
  • Any other benefits from clients reserved for employees

Indemnification Clause

This clause seeks to address issues such as the cost of service and fees that are the client’s responsibility. It may also outline that the contractor will indemnify the client (say they aren’t to blame) in case of losses or claims following the contract work. 

Termination of the Agreement

This section gives insights🔍 concerning the conditions for termination of the contract. In some cases, they may end the contract upon the achievement of all project deliverables at the time of termination. If the client hires the freelance work on a long-term⏱ independent contractor-client relationship, this section gives details regarding how the long-term contract may get terminated.

On the other hand, this section may also stipulate termination due to a lack of meeting requirements on either side. An offense followed by a subsequent breach, for example, may give a freelancer permission to terminate a contract with a client who isn’t handling their end of the deal. 

Permission to Hire Subcontractors

Depending on the nature of the work, the document may state whether the contractor has the freedom to outsource part of the work assigned to other freelancers (subcontractors). The document should outline that the independent contractor shall bear full responsibility for the hired subcontractors and that the client incurs no extra cost of service🤓.

The template should state that before hiring subcontractors, the contractor must first confirm with the hiring company if they accept these additional terms. If the hiring company agrees to such additional terms🤔, the contractors will also take the responsibility of paying federal taxes and any other tax requirements for the hired subcontractors.

Customizable Sections of an Independent Contractor Agreement Form Template

Here are the sections of an independent contractor agreement template you’ll need to change depending on the job or contractor. 

Scope of the Work

This section outlines what the entire project entails, which probably changes for every project. You must outline:

  • Services and products procured by the employer
  • The project deliverables so that both parties can develop a fruitful working relationship 👍
  • The period of time in which the freelance contractor will work

Service Compensation

Both parties must clearly understand the payment details and how proof of payment gets obtained. The agreement form template needs to outline:

  • How much the contractor will receive for their work
  • The method of payment
  • Whether payments will happen after the completion of a certain milestone or within a given frequency of the freelance contract
  • Any tax payments if applicable. 

Governing Law

In some instances, the parties involved (the business entity and the contractor) come from different states or countries. In that case, they must decide on which laws ⚠ will govern the contract as a legal entity. This happens mostly when a legal battle 🗣 ensues between the parties. Therefore, this documents significant applications for legal purposes.

Get Assistance with Your Independent Contractor Agreement Form Template 

An independent contractor agreement form template seeks to benefit all parties involved in a service arrangement. It’s therefore recommended that each party (business owner or independent contractor) takes part in drafting✍ and signing the independent contractor agreement form template. While online resources will tell you most of the above sections are required for a good independent contractor agreement, you may also need: 

  • General information for the client and freelancer
  • The date of the agreement 
  • Severability
  • A confidentiality agreement or multiple confidentiality clauses
  • Waiver clause
  • Liability insurance
  • Intellectual property rights clarification
  • And more!

We know that may seem like a lot. Do you need assistance 🤔 with filing your independent contractor agreement form? An experienced🕵 internet attorney like Ian Corzine can offer great help! To get started, just purchase our independent contractor agreement here. We will help you customize it so it protects both you and the person you’re working with and fosters an amazing business relationship!