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?
A Hawaii Independent Contractor Agreement is a legally binding document that outlines the terms and conditions of the working relationship between a licensed counselor and therapist and a licensed counselor and therapist practicing as a solo practitioner. This agreement is designed to ensure that both parties understand their responsibilities, rights, and obligations during their collaboration. There are several types of Hawaii Independent Contractor Agreements that may be relevant for licensed counselors and therapists practicing as solo practitioners. Some common types include: 1. Hawaii Independent Contractor Agreement for Counseling Services: This type of agreement is specifically tailored for licensed counselors and therapists who provide counseling services to clients as solo practitioners. It outlines the scope of services to be provided, payment terms, confidentiality, and any limitations or restrictions on the counselor's practice. 2. Hawaii Independent Contractor Agreement for Therapeutic Services: This agreement is similar to the counseling services agreement but is specifically designed for licensed counselors and therapists who offer therapeutic services, such as art therapy or play therapy. It may include additional provisions related to the specific therapeutic approach used. 3. Hawaii Independent Contractor Agreement for Teletherapy Services: As remote therapy services become more popular, licensed counselors and therapists may enter into independent contractor agreements specifically for teletherapy services. This agreement addresses the unique considerations and requirements associated with providing therapy services online or over the phone. Regardless of the specific type of independent contractor agreement, certain elements are typically included. These can include: — Identification of the parties involved: The agreement will clearly state the names and contact information of both the licensed counselor and therapist and the licensed counselor and therapist practicing as a solo practitioner. — Scope of services: The agreement will provide a detailed description of the services to be provided by the counselor and any limitations or restrictions on the services. — Compensation: This section will outline the payment terms, including the rate of compensation, how and when payment will be made, and any additional expenses that will be reimbursed. — Independent contractor status: The agreement will state that the counselor is an independent contractor and not an employee of the solo practitioner. It will clarify that the counselor is responsible for their own taxes and benefits. — Confidentiality: This section will outline the confidentiality obligations of both parties and specify the protection of client privacy and records. — Termination: The agreement will provide details on how either party can terminate the agreement, including any notice requirements. — Governing law: The agreement will specify that it is governed by the laws of Hawaii and any dispute resolution process that may be followed in case of disagreement or conflict. Overall, a Hawaii Independent Contractor Agreement between a licensed counselor and therapist and a licensed counselor and therapist practicing as a solo practitioner is an essential document that ensures a clear understanding of the expectations and responsibilities of both parties, leading to a professional and effective working relationship.
