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A compliant independent contractor agreement for hiring in the United States of America

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Library
Country specific hiring info

A compliant independent contractor agreement for hiring in the United States of America

Get your independent contractor agreement in the United States of America for $0

Hey, we’re Thera: The platform built for hiring and paying contractors, all over the world. We’ve got locally-compliant contracts in more than 150 countries—written to comply with local contracting laws in places like the United States of America.

The good news: Thera’s free until you pay your first contractor. So, grabbing your contractor agreement costs you a grand total of $0. Hit the button below to pick up your locally-compliant contract in the United States of America. It takes all of 2 minutes to sign up.

Answering all your questions about independent contractor agreements in the United States of America

You probably have questions. We’re here to answer them. Below, you’ll learn all the extra stuff you should probably know before putting together an independent contractor agreement for the United States of America.

Why do I need an independent contractor agreement in the United States of America?

It’s not uncommon for businesses to work with contractors without written agreements, but this is poor practice. Independent contractor agreements are crucial for the legal protection of you and the contractor. They ensure that the contractor receives the agreed-upon compensation for their work and you receive the work you hired them to do. Additionally, they guarantee that both parties are on the same page before you begin working together, allowing for a smoother partnership.

Written agreements help protect your business from misclassification risk and subsequent tax liability. The Internal Revenue Service outlines three measures for assessing the legitimacy of a contractor’s status as an independent worker: Behavioral Control, Financial Control, and the Relationship of the parties. A compliant contract will demonstrate that the contractor has freedom over their work and detail your compensation agreement, helping establish the legitimacy of their classification and protecting your company from expensive penalties.

In short, written agreements hold you and the contractor accountable to each other, and you should prioritize having one. In the United States, and everywhere else you hire.

What do contractor agreements in the United States of America typically need to have?

Every contractor agreement in the United States of America (and, the rest of the world) can be broken up into two parts:

  • Contract-specific variables: This includes things like scope of work, rate, and deadline. They’re the project-specific variables that you’ll include with each contract, and are totally dependent on what type of work you’re hiring a contractor to do.
  • Everything else: Besides things like scope and deadline, every independent contractor agreement in the United States of America should follow a similar structure. If you want to grab your own contract with a compliant structure for the United States of America, sign up to Thera
What makes contractors different from employees in the United States of America?

Working with independent contractors is typically cheaper, faster, and easier than hiring a new employee. Employees and contractors have different rights and responsibilities beyond hiring, though, and it is important to understand them in order to make the best decision for your company.

Here are a few of the key things that make contractors different from employees in the United States of America:

  • Contractors can set their own schedules
  • Contractors can work with their own software and tools
  • Contractors are solely responsible for their tax liability
  • Contractors can work for other clients
  • Contractors are rarely entitled to benefits, like health insurance*

The key word to remember when it comes to working with contractors is flexibility. Contractors have the right to complete their work according to their schedule and pursue other opportunities that pique their interests. As the proprietor, working with contractors is often less risky for your business than hiring a new employee. The best part? Both parties can choose to keep working together if the first contract goes well, and Thera can help with each new independent contractor agreement your partnership requires.

*With Thera, you can get your contractors access to sign up for premium global health insurance, from SafetyWing, at a 50% discount.

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