Independent Contractor Agreement for Accountants and Bookkeepers (for Firm)
Independent Contractor Agreement for Accountants and Bookkeepers (for Firm)
This Agreement is made between ("Client"), with a principal place of business at , and ("Contractor"), with a principal place of business at .
Services to Be Performed
|Alternate Selection: [payment]|
|fixed fee||Contractor will be paid $ upon completion of the work as detailed in this Agreement.|
Client will pay Contractor a fixed fee of $, in installments as follows:
Contractor will be compensated at the rate of $ per .
|Alternate Selection: [expenses]|
|no reimbursement||Contractor will be responsible for all expenses incurred while performing services under this Agreement.|
Client will reimburse Contractor for the following expenses that are directly attributable to work performed under this Agreement: . Contractor will submit an itemized statement of Contractor's expenses. Client will pay Contractor within 30 days after receipt of each statement.
Contractor will submit invoices for all services rendered. Client will pay Contractor within days after receipt of each invoice.
Contractor will furnish all materials, equipment, and supplies used to provide the services required by this Agreement.
Independent Contractor Status
Contractor is an independent contractor, and neither Contractor nor Contractor's employees or contract personnel is, or will be deemed, Client's employees. In its capacity as an independent contractor, Contractor agrees and represents, and Client agrees, as follows:
|Multiple Selection: [independent contractor status]|
IC status 1
|Contractor has the right to perform services for others during the term of this Agreement subject to noncompetition provisions set out in this Agreement, if any.|
|IC status 2||Contractor has the sole right to control and direct the means, manner, and method by which the services required by this Agreement will be performed.|
|IC status 3||Contractor has the right to perform the services required by this Agreement at any place or location and at such times as Contractor may determine.|
|IC status 4||Contractor will furnish all equipment and materials used to provide the services required by this Agreement, except to the extent that Contractor's work must be performed on or with Client's computer or existing software.|
|IC status 5||The services required by this Agreement will be performed by Contractor or Contractor's employees or contract personnel, and Client will not be required to hire, supervise, or pay any assistants to help Contractor.|
|IC status 6||Contractor is responsible for paying all ordinary and necessary expenses of its staff.|
|IC status 7||Neither Contractor nor Contractor's employees or contract personnel will receive any training from Client in the professional skills necessary to perform the services required by this Agreement.|
|IC status 8||Neither Contractor nor Contractor's employees or contract personnel will be required to devote full time to the performance of the services required by this Agreement.|
|IC status 9||Client will not withhold from Contractor's compensation any amount that would normally be withheld from an employee's pay.|
Business Permits, Certificates, and Licenses
Contractor has complied with all federal, state, and local laws requiring business permits, certificates, and licenses required to carry out the services to be performed under this Agreement.
Contractor will perform all services under this Agreement in accordance with generally accepted accounting practices and principles. This Agreement is subject to the laws, rules, and regulations governing the accounting profession imposed by government authorities or professional associations of which Contractor is a member.
|Multiple Selection: [insurance clause option]|
State and Federal Taxes
Client will not:
- withhold FICA (Social Security and Medicare taxes) from Contractor's payments or make FICA payments on Contractor's behalf
- withhold state or federal income tax from Contractor's payments, or
- withhold any other state or federal payroll taxes from Contractor's payments or make such contributions on Contractor's behalf.
Contractor will pay all taxes incurred while performing services under this Agreement -- including all applicable income taxes and, if Contractor is not a corporation, self-employment (Social Security) taxes. Upon demand, Contractor will provide Client with proof that such payments have been made.
Contractor understands that neither Contractor nor Contractor's employees or contract personnel are eligible to participate in any employee pension, health, vacation pay, sick pay, or other fringe benefit plan of Client.
Client will not obtain workers' compensation insurance on behalf of Contractor or Contractor's employees or agents. Contractor will provide Contractor's employees with workers' compensation insurance to the extent required by law and provide Client with a certificate of workers' compensation insurance. Contractor agrees to hold harmless and indemnify Client for any and all claims arising out of any injury, disability, or death of Contractor or any of Contractor's employees or agents.
Client will make no state or federal unemployment compensation payments on behalf of Contractor or Contractor's employees or contract personnel. Contractor will not be entitled to these benefits in connection with work performed under this Agreement. Contractor will be responsible for making any such unemployment contributions on behalf of Contractor's employees, to the extent required by law.
Warranties and Representations
Contractor warrants and represents that:
- Contractor has the authority to enter into this Agreement and to perform all obligations hereunder.
- Contractor will not engage in any illegal or unethical accounting or business practices.
Contractor agrees to indemnify and hold harmless Client against any third-party claims, actions, or demands, including without limitation reasonable attorney and accounting fees, alleging or resulting from the breach of the warranties contained in this Agreement. Client will provide notice to Contractor promptly of any such claim, suit, or proceeding and will assist Contractor, at Contractor's expense, in defending any such claim, suit, or proceeding.
Term of Agreement
This agreement will become effective when signed by both parties and will terminate on the earliest of:
- the date Contractor completes the services required by this Agreement
- , or
- the date a party terminates the Agreement as provided below.
Termination of Agreement
Each party has the right to terminate this Agreement if the other party has materially breached any obligation herein and such breach remains uncured for a period of 30 days after notice is sent to the other party.
If at any time after commencement of the services required by this Agreement, Client in its sole reasonable judgment, determines that such services are inadequate, unsatisfactory, no longer needed, or substantially not conforming to the descriptions, warranties, or representations contained in this Agreement, Client may terminate this Agreement upon days' written notice to Contractor.
|Multiple Selection: [confidential information]|
Contractor confidentiality. Contractor acknowledges that within the course of providing services, it will be necessary for Client to disclose certain confidential and proprietary information to Contractor in order for Contractor to perform duties under this Agreement. Contractor acknowledges that any disclosure to any third party or any misuse of this proprietary or confidential information would irreparably harm Client. Accordingly, Contractor will not use or disclose to others without Client's written consent Client's confidential information, except when reasonably necessary to perform the services under this Agreement.
Scope of confidential information. Confidential Information includes, but is not limited to:
Contractor will not be restricted in the use of any material that is publicly available, already in Contractor's possession prior to commencement of Contractor's provision of services to Client, known to Contractor without restriction, or rightfully obtained by Contractor from sources other than Client.
Contractor's obligations regarding proprietary or confidential information extend to information belonging to customers and suppliers of Client about which Contractor may have gained knowledge as a result of Contractor's services to Client.
Contractor will not disclose to Client information or material that is a trade secret of any third party. The provisions of this clause will survive any termination of this Agreement.
|Multiple Selection: [disputes option]|
|private dispute resolution||
|Multiple Selection: [attorney fees option]|
The prevailing party shall have the right to collect from the other party its reasonable costs and disbursements and attorney fees incurred in enforcing this Agreement.
This is the entire agreement between the parties. It replaces and supersedes any and all oral agreements between the parties, as well as any prior writings. This Agreement may not be amended except in writing as provided for in this Agreement.
This agreement binds and benefits the respective successors, inheritors, assigns, and personal representatives of the parties, except to the extent of any contrary provision in the Agreement.
The failure to exercise any right provided in this Agreement shall not be a waiver of prior or subsequent rights.
This Agreement will be governed by and construed in accordance with the laws of the state of .
If any court determines that any provision of this Agreement is invalid or unenforceable, any invalidity or unenforceability will affect only that provision and will not make any other provision of this agreement invalid or unenforceable and shall be modified, amended, or limited only to the extent necessary to render it valid and enforceable.
Any attached sheet or document shall be regarded as fully contained in this Agreement.
All notices must be in writing. A notice may be delivered to a party at the address that follows a party's signature or to a new address that a party designates in writing. A notice may be delivered: in person, by certified mail, or by overnight courier.
This Agreement does not create a partnership relationship. Contractor does not have authority to enter into contracts on Client's behalf.
This agreement may be signed by the parties in different counterparts and the signature pages combined will create a document binding on all parties.
MY SIGNATURE BELOW INDICATES THAT I HAVE READ AND UNDERSTOOD THIS AGREEMENT.
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Take the worry out of your working relationship with an independent accounting or bookkeeping contractor
If your firm ever comes under IRS scrutiny, it's important that you have documentation establishing the status of each of the independent contractors ("ICs") you've hired. Use this simple agreement written specifically for accounting and bookkeeping contractors to help ensure that your working relationship functions smoothly, and to prove that the worker is indeed an independent contractor and not an employee.
The agreement covers:
- services the IC will provide
- deadlines the IC must meet
- when the IC will be paid and how much
- how either side can change or end the agreement
Simply fill out the required information on the form, enter your IC's taxpayer ID number, print, and sign. It's that easy!
This form is appropriate for organizations hiring ICs. If you're an independent contractor, use this form instead: