An independent contractor is a person or business who performs services for another person pursuant to an agreement and who is not subject to the other's control, or right to control, the manner and means of performing the services. The exact nature of the independent contractor's relationship with the hiring party is important since an independent contractor pays his/her own Social Security, income taxes without payroll deduction, has no retirement or health plan rights, and often is not entitled to worker's compensation coverage. The traditional tests to determine whether a worker is an employee or independent contractor involve the concept of control. The Internal Revenue Service (IRS) developed 20 factors used to determine whether a worker is an independent contractor under the common law. A "yes" answer to any of these questions would be evidence of an employer-employee relationship.
" Does the principal provide instructions to the worker about when, where, and how he or she is to perform the work?
" Does the principal provide training to the worker?
" Are the services provided by the worker integrated into the principal's business operations?
" Must the services be rendered personally by the worker?
" Does the principal hire, supervise and pay assistants to the worker?
" Is there a continuing relationship between the principal and the worker?
" Does the principal set the work hours and schedule?
" Does the worker devote substantially full time to the business of the principal?
" Is the work performed on the principal's premises?
" Is the worker required to perform the services in an order or sequence set by the principal?
" Is the worker required to submit oral or written reports to the principal?
" Is the worker paid by the hour, week, or month?
" Does the principal have the right to discharge the worker at will?
" Can the worker terminate his or her relationship with the principal any time he or she wishes without incurring liability to the principal?
" Does the principal pay the business or traveling expenses of the worker?
A "yes" answer to any of these questions would be evidence of an independent contractor relationship.
" Does the worker furnish significant tools, materials and equipment?
" Does the worker have a significant investment in facilities?
" Can the worker realize a profit or loss as a result of his or her services?
" Does the worker provide services for more than one firm at a time?
" Does the worker make his or her services available to the general public?
Arizona Independent Contractor Agreement Between Licensed Counselor and Therapist and Licensed Counselor and Therapist Practicing as a Solo Practitioner: 1. Introduction: The Arizona Independent Contractor Agreement is a legally binding contract that establishes the terms and conditions between a licensed counselor and therapist and a solo practitioner. This agreement outlines the scope of work, payment terms, responsibilities, and other important details regarding the professional relationship. 2. Agreement Types: While there may not be different types of specific Arizona Independent Contractor Agreements tailored exclusively for licensed counselors and therapists practicing as solo practitioners, the agreement itself can be adapted to suit the unique needs and circumstances of individual professionals. For example, variations may occur in terms of compensation structure, duration, termination clauses, and scope of practice. 3. Scope of Work: This Independent Contractor Agreement defines the specific counseling and therapy services that the licensed counselor and therapist will provide within the framework of their solo practice. It details the types of counseling services offered, including individual therapy, group therapy, family therapy, and specialized treatment modalities such as cognitive-behavioral therapy or trauma-informed care. 4. Compensation: The agreement stipulates the compensation structure for the independent contractor, outlining whether the licensed counselor and therapist will be paid on an hourly basis, per session, or using another agreed-upon method. It may also highlight how and when payments will be made, including any relevant invoicing or reimbursement processes. 5. Confidentiality and Privacy: Ensuring client confidentiality and privacy is paramount in any counseling or therapy practice. This agreement will have a comprehensive section that outlines the obligations of the licensed counselor and therapist to maintain client confidentiality within legal and ethical boundaries. It may reference the Health Insurance Portability and Accountability Act (HIPAA) and relevant state laws governing protected health information. 6. Termination and Renewal: The contract will address the conditions under which either party can terminate the agreement, including notice periods and reasons for termination. Additionally, it may outline the procedure for renewal, should both parties wish to continue their professional relationship beyond the initial term of the agreement. 7. Indemnification and Liability: To protect both parties, this section will define the responsibilities of the licensed counselor and therapist in terms of liability, such as malpractice insurance coverage and professional conduct. It may also include a provision for indemnification, which specifies how either party can seek compensation for damages resulting from the other's actions or negligence. 8. Governing Law and Jurisdiction: This clause determines which state laws govern the agreement and establishes the jurisdiction in which any disputes will be resolved, typically within the state of Arizona. It's important to consult with a qualified legal professional when drafting or entering into an Independent Contractor Agreement to ensure compliance with applicable laws in Arizona and the specific requirements of the licensed counselor and therapist practicing as a solo practitioner.
