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?
Montana Independent Contractor Agreement Between Licensed Counselor and Therapist and Licensed Counselor and Therapist Practicing as a Solo Practitioner is a legal document that sets forth the terms and conditions under which a licensed counselor and therapist enters into an independent contractor relationship with a solo practitioner in the state of Montana. This agreement outlines the rights and responsibilities of both parties involved, ensuring clarity and protection for all involved stakeholders. In Montana, there may be several types of Independent Contractor Agreements between licensed counselors and therapists practicing as solo practitioners. These variations can include but are not limited to: 1. Standard Independent Contractor Agreement: This is the basic agreement that covers the general terms and conditions for the independent contractor relationship between the licensed counselor and therapist and the solo practitioner. It establishes factors such as compensation, termination clauses, confidentiality, and dispute resolution methods. 2. Exclusive Independent Contractor Agreement: This variation of the agreement limits the licensed counselor and therapist from engaging in similar contractual relationships with other solo practitioners or organizations during the specified duration of the agreement. It ensures the solo practitioner has exclusive access to the services of the licensed counselor and therapist. 3. Non-Exclusive Independent Contractor Agreement: In contrast to the exclusive agreement, this type allows the licensed counselor and therapist to enter into similar contractual relationships with other solo practitioners or organizations, granting them more flexibility in their practice. 4. Limited Scope Independent Contractor Agreement: This agreement specifies a particular area or scope of practice in which the licensed counselor and therapist will provide services to the solo practitioner. The agreement precisely outlines the conditions and limitations of these services. The Montana Independent Contractor Agreement Between Licensed Counselor and Therapist and Licensed Counselor and Therapist Practicing as a Solo Practitioner may cover various essential aspects, including: 1. Identification of the Parties: The agreement will begin by clearly identifying both the licensed counselor and therapist and the solo practitioner. Their full legal names, addresses, and contact information will be stated. 2. Scope of Services: This section details the specific services the licensed counselor and therapist will render to the solo practitioner. It may include counseling and therapy sessions, assessments, treatment planning, referrals, consultations, and any additional services agreed upon. 3. Payment Terms: The agreement will outline the compensation structure for the licensed counselor and therapist's services. This may include fee schedules, payment methods, invoicing procedures, and any relevant tax reporting obligations. 4. Independent Contractor Status: It is essential to define the independent contractor relationship, confirming that the licensed counselor and therapist is not an employee but an independent entity responsible for their own taxes, insurance, and licensing requirements. 5. Confidentiality and Privacy: The agreement will address the confidentiality of client information, ensuring compliance with state and federal laws such as HIPAA. It will outline the procedures for handling protected health information, maintaining client privacy, and data security measures. 6. Duration and Termination: This section specifies the duration of the agreement, including its start and end dates. It also outlines the circumstances under which either party can terminate the agreement, along with any notice periods or requirements. 7. Dispute Resolution: In the event of a dispute or disagreement, the agreement may include a clause specifying the preferred method of resolution, such as mediation or arbitration, to avoid litigation. As with any legal document, it is recommended to consult with a qualified attorney experienced in Montana laws and regulations when preparing and executing an Independent Contractor Agreement for licensed counselors and therapists practicing as solo practitioners in the state.
