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?
Keywords: Guam, Independent Contractor Agreement, Licensed Counselor, Therapist, Solo Practitioner Description: A Guam Independent Contractor Agreement is a legally binding document that outlines the terms and conditions between a licensed counselor or therapist and a licensed counselor or therapist practicing as a solo practitioner. This agreement serves to establish the working relationship between the two parties and ensures a mutual understanding of their roles, responsibilities, and obligations. In Guam, there may be different types of Independent Contractor Agreements for licensed counselors and therapists who practice as solo practitioners. Some common types include: 1. Professional Services Agreement: This type of agreement outlines the professional services to be provided by the licensed counselor or therapist to clients, as well as the payment structure and confidentiality provisions. It also includes any specific terms related to the counseling or therapy practice as a solo practitioner. 2. Non-Disclosure Agreement: This agreement ensures the protection of confidential and sensitive information shared between the licensed counselor or therapist and the solo practitioner. It includes provisions that restrict the disclosure of such information to third parties and outlines the consequences of any breach. 3. Fee Splitting Agreement: In cases where licensed counselors or therapists opt to share fees with a solo practitioner, a Fee Splitting Agreement might be necessary. This agreement specifies the percentage or amount of fees that will be split between the parties involved, as well as any other relevant terms related to the financial arrangement. 4. Scope of Practice Agreement: This agreement defines the scope of practice for both the licensed counselor or therapist and the solo practitioner. It helps ensure that each party performs only within their authorized scope and does not engage in activities beyond their professional expertise. 5. Termination Agreement: In cases where either party wishes to terminate the Independent Contractor Agreement before its designated end date, a Termination Agreement may be necessary. This agreement outlines the process for termination, including notice period, obligations during the termination period, and any financial settlements required. It is important for both parties to consult with legal professionals to craft an Independent Contractor Agreement that aligns with Guam's specific laws and regulations. This ensures that the agreement protects their rights and interests while establishing a harmonious and ethical working relationship.
