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?
North Dakota Contract with Sales Representative as Independent Contractor to Sell Snow Removal Services in Exclusive Territory: Description: A North Dakota Contract with Sales Representative as Independent Contractor to Sell Snow Removal Services in Exclusive Territory is a legally binding agreement between a snow removal service company and a sales representative who is hired as an independent contractor to promote and sell the company's snow removal services within a specified exclusive territory in North Dakota. Keywords: 1. North Dakota: Refers to the state of North Dakota, a region known for its particularly harsh winter conditions and the need for reliable snow removal services. 2. Contract: Signifies a legally binding agreement between two parties, the snow removal service company and the sales representative. 3. Sales Representative: Indicates the individual hired representing and promote the snow removal service company's offerings in a professional and persuasive manner. 4. Independent Contractor: Highlights that the sales representative operates as an independent business entity and is responsible for their own taxes, benefits, and expenses. 5. Snow Removal Services: Emphasizes the primary service provided by the company, which involves removing snow from various residential and commercial properties. 6. Exclusive Territory: Denotes a specific geographical area designated solely for the sales representative, granting them exclusivity to promote and sell the company's snow removal services within that territory. Types: 1. Exclusive Territory Contracts for Residential Snow Removal: This type of contract is focused on selling snow removal services to individual homeowners in North Dakota. The sales representative is responsible for targeting residential areas, developing relationships with homeowners, and securing contracts for snow removal services. 2. Exclusive Territory Contracts for Commercial Snow Removal: This type of contract concentrates on selling snow removal services to commercial entities such as businesses, schools, hospitals, and shopping centers. The sales representative is responsible for identifying potential clients, presenting the benefits of the company's services, and acquiring contracts for snow removal within the designated territory.
