Sample independent contractor agreement PDF
Still not sure what a freelance contract should have? Look no further – weโve got a sample independent contractor agreement PDF and notes included, right here.
The specialists at Payoneer Workforce Management have helped thousands of businesses grow their operations by hiring independent contractors. As a result, we have seen a lot of the mistakes business owners make when drafting their own contracts.
The following article provides a sample independent contractor agreement PDF (download is available below the image and at the bottom of the page) as well as advice for how to construct/alter your own.
Disclaimer: What follows is a general template designed to give business owners a sense of what is typically included in an independent contractor agreement. None of the information that follows qualifies as legal advice. Consult legal counsel before using any sample agreement. |
Download the sample independent contractor agreement.
What do I need to know before using a sample independent contractor agreement?
The following subsections address commonly asked questions about how to send/manage an independent contractor agreement.
Do I need a notary for an independent contractor agreement?
No, but keep a signed copy with both parties in the event of a dispute.
[If international:] What international/local laws affect this contract?
The framework provided above can be used with a few tweaks:
- Section 2 should include information pertaining to currency, payment method, and FX fees, where applicable
- Section 5 will need to be amended to take international copyright laws into account
- Section 9 should include a governing law clause stating that the laws of the businessโs location will govern the agreement, as well as an arbitration clause identifying an international body (e.g., International Chamber of Commerce, American Arbitration Association) to settle disputes
Also, remember to provide the contractor with a W-8BEN form if they are located outside of the United States.
Do I need an independent contractor agreement?
Technically, no, but you really should. Without a formal agreement on paper, you run the risk of:
- Project delays due to lack of Proof-of-Terms
- IRS misclassification
- IP Ownership loss
- More difficult dispute resolutions
Is a Statement-of-Work (SOW) necessary?
No, but most companies prefer to work with one because they lay out the project elements (e.g., deliverables, timeline, payment) in greater detail, which allows for a clearer workflow. SOWs are not, however, a legal requirement.
What legal mistakes should I watch out for?
Entering into a business relationship with a contractor requires careful attention to detail, especially if you arenโt working with an Agent of Record (AOR) or some other contractor management tool.
The table below outlines these considerations in regards to the sections listed in the PDF.
Common mistakes with independent contractor agreements
Section | Subject | Note |
---|---|---|
Section 2 | Termination | Failing to clearly outline the terms by which both contractor and company can terminate a contract, as well as observance of local laws regulating the subject. |
Section 3 | Tax Responsibilities | Failing to identify who is responsible for taking the taxes out of the contractorโs check (this nearly always falls to the contractor), as well as which tax form (W-9/W-8BEN, TIN, 1099) is being used. |
Section 4 | Classification Status | Treating the contractor as an employee can lead to hefty misclassification fines from both the US and foreign regulating bodies. |
Section 5 | IP Ownership | Failing to clearly identify who owns the IP and when can lead to messy legal disputes that compromise your work while draining your bank account. |
Is there an easier way to send an independent contractor agreement?
Often, business owners looking to avoid the hassle of sending and managing their own independent contractor agreements choose to outsource this and other related work to a third-party. These options typically handle the heavy lifting on behalf of the client, allowing them to focus more on the company mission.
The most common options include:
Agent-of-Record (AOR) | Contractor Management Tools | |
---|---|---|
Pros | Simplifies compliance | Centralizes contractor information |
Built-in Onboarding & IP management | More budget-friendly | |
Cons | Higher cost | Company assumes compliance risk |
Less control over contractor relationships | Limited legal support | |
Best For | US companies hiring internationally, businesses scaling rapidly without local entities, businesses needing legal support | Startups/small businesses wanting more complete in-house control over the contractor management process |
Sample independent contractor agreement (PDF download)
If youโd like to download our sample independent contractor agreement, the PDF is available here.
If you would like more information on how to implement contractor management tools for your business, speak with one of the experts at Payoneer WFM using the link below.
Disclaimer
Nothing herein should be construed as if Payoneer Inc. or its affiliates are soliciting or inviting any person outside the jurisdiction where it operates/is licensed to engage in payment services provided by Payoneer Inc. or its affiliates, unless permitted by applicable laws. Any products/services availability are subject to customerโs eligibility. The availability of this product is not guaranteed and may vary. Not all products/services are available in all jurisdictions in the same manner.
Related resources
Latest articles
-
A guide to starting a business in Estonia as a non-citizen
If youโve thought about opening a new business somewhere with plenty of government support, expanding your business into the EU, or making it easier to work as a contractor or digital nomad anywhere in the European Economic Area (EEA), you should think about starting a business in Estonia…
-
How to simplify payment operations with Payoneerโs automation feature
Save time, reduce costs, and eliminate errors with Payoneerโs new payment automation feature.
-
How to prevent online payment fraud as an SMB
Prevent online payment fraud by overcoming challenges like phishing, fake accounts, and account takeovers (ATO) with enhanced security features from Payoneer.
-
Amazon Fees & Policy Updates 2024
Amazon regularly makes planned updates to fees and policies that may impact Payoneer customers that sell on Amazon. To keep Payoneer customers informed regarding upcoming and past updates, weโre providing a list of known changes to Amazon fees and Policy updates.
-
How Payoneerโs target exchange rate feature will help you save more on bank withdrawals
Boost savings with Payoneerโs target exchange rate feature.
-
Navigating phishing attacks: A guide to keeping your Payoneer account secure
Keeping your funds safe is our number one priority at Payoneer. While phishing attempts can happen, arming yourself with knowledge is key to keeping your data and money safe