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?
New Mexico Independent Contractor Agreement Between Licensed Counselor and Therapist and Licensed Counselor and Therapist Practicing as a Solo Practitioner In New Mexico, an Independent Contractor Agreement is a crucial legal document for licensed counselors and therapists who wish to work with another licensed counselor and therapist, specifically when one party is operating as a solo practitioner. This agreement outlines the terms and conditions of the independent contractor relationship, ensuring clarity and protection for both parties involved. Keywords: New Mexico, independent contractor agreement, licensed counselor, therapist, solo practitioner Types of New Mexico Independent Contractor Agreements Between Licensed Counselor and Therapist and Licensed Counselor and Therapist Practicing as a Solo Practitioner: 1. General Independent Contractor Agreement: This type of agreement lays out the basic terms and expectations between licensed counselors and therapists entering into an independent contractor relationship when both parties are operating as solo practitioners. It covers crucial elements such as services provided, compensation, liability, termination terms, and confidentiality. 2. Referral Independent Contractor Agreement: This agreement is commonly used when a licensed counselor or therapist refers clients to another licensed counselor or therapist who practices as a solo practitioner. It establishes the terms and responsibilities of the referring party, including compensation for referrals and the obligations of the receiving party in providing appropriate care to the referred clients. 3. Space Rental Independent Contractor Agreement: In situations where a licensed counselor or therapist operates as a solo practitioner and rents office space from another licensed counselor or therapist, a separate agreement called a Space Rental Independent Contractor Agreement may be necessary. This agreement outlines the terms and conditions of the rental, including rent amount, duration, maintenance responsibilities, and other relevant provisions. 4. Supervision Independent Contractor Agreement: This type of agreement is typically used when a licensed counselor or therapist wishes to provide clinical supervision to another licensed counselor or therapist who operates as a solo practitioner. It outlines the scope and nature of supervision services, compensation, supervision methods, and the responsibilities of both parties. 5. Collaborative Independent Contractor Agreement: A collaborative independent contractor agreement is utilized when licensed counselors or therapists decide to collaborate on a specific project or provide joint services to clients while operating as solo practitioners. This agreement defines the terms of collaboration, including roles, responsibilities, profit-sharing, and termination clauses. Regardless of the type of New Mexico Independent Contractor Agreement chosen, it is essential for licensed counselors and therapists to consult with legal professionals in order to ensure compliance with state laws, protect their rights, and create a mutually beneficial working relationship between independent parties.
