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?
Title: Michigan Independent Contractor Agreement Between Licensed Counselor and Therapist and Licensed Counselor and Therapist Practicing as a Solo Practitioner Keywords: Michigan, independent contractor agreement, licensed counselor, therapist, solo practitioner Description: In Michigan, an independent contractor agreement between a licensed counselor and therapist and a licensed counselor and therapist practicing as a solo practitioner is a legally binding contract that outlines the terms and conditions of their professional relationship. This agreement serves to establish the roles, responsibilities, and expectations of both parties involved. 1. Scope of Work: The independent contractor agreement defines the specific services to be provided by the licensed counselor and therapist in their solo practice. This may include individual counseling, group therapy sessions, assessment and diagnosis, treatment planning, and any other services relevant to their scope of practice. 2. Compensation: The agreement establishes the payment terms for the independent contractor. It outlines the fee structure, whether it is on a per-session basis, percentage-based, or an alternative arrangement. Additionally, this section may include provisions for reimbursement of any out-of-pocket expenses incurred in the course of providing services. 3. Schedule and Availability: The document may specify the agreed-upon schedule for the licensed counselor and therapist to provide services. It may also address any requirements for on-call availability, emergency coverage, and vacation time. 4. Confidentiality and Privacy: To protect the client's privacy, the independent contractor agreement emphasizes the importance of confidentiality and adherence to state and federal laws, such as the Health Insurance Portability and Accountability Act (HIPAA). It outlines the licensed counselor and therapist's responsibility to maintain confidentiality and the procedures in place to ensure the privacy and security of client information. 5. Legal Compliance: The agreement should include provisions to ensure compliance with all relevant laws, regulations, and professional codes of ethics. This may cover matters such as licensure requirements, maintaining appropriate insurance coverage, and reporting obligations for suspected abuse or neglect. Types of Michigan Independent Contractor Agreements — Solo Practitioner: 1. Standard Independent Contractor Agreement: This agreement is suitable for licensed counselors and therapists who operate as solo practitioners, providing counseling and therapy services on an independent contractor basis. It covers the fundamental aspects mentioned above. 2. Collaborative Practice Independent Contractor Agreement: This agreement is applicable when licensed counselors and therapists decide to form a collaborative practice. It outlines the specific terms related to the shared resources, space, costs, and responsibilities within the collaborative practice. 3. Telehealth Independent Contractor Agreement: For licensed counselors and therapists who offer online counseling services or telehealth, this agreement addresses the unique considerations pertaining to telehealth practices, ensuring compliance with state regulations and protecting client privacy in the digital realm. In conclusion, an independent contractor agreement for licensed counselors and therapists in Michigan establishes the professional relationship and expectations between parties engaging in a solo practice or collaborative practice. These agreements ensure legal compliance, confidentiality, and fair compensation, ultimately facilitating a mutually beneficial working arrangement.
