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?
Pennsylvania Independent Contractor Agreement Between Licensed Counselor and Therapist and Licensed Counselor and Therapist Practicing as a Solo Practitioner is a legal document that establishes the terms and conditions of a professional working relationship between two parties. This agreement outlines the responsibilities, rights, and obligations of both the licensed counselor and therapist as well as the licensed counselor and therapist practicing as a solo practitioner. Key terms and clauses that are commonly included in this type of agreement include: 1. Identification of the Parties: The agreement begins by identifying the names, addresses, and contact information of both parties involved in the contract. 2. Scope of Work: This section outlines the specific services to be provided by the licensed counselor and therapist to the solo practitioner. It should include details about the counseling or therapeutic methods, areas of expertise, and any specializations agreed upon. 3. Terms and Duration: The agreement specifies the length of the contract, including the start and end dates. It may also include renewal options or provisions for early termination. 4. Independent Contractor Status: This section clarifies that the licensed counselor and therapist is an independent contractor and not an employee of the solo practitioner. It should emphasize the contractor's responsibility for taxes, insurance, and self-employment compliance. 5. Compensation: The agreement details the payment terms, including the rate of compensation, invoicing procedures, and the timeline for payment. It may also include provisions for reimbursement of expenses incurred during the provision of services. 6. Confidentiality: Both parties should agree to maintain strict confidentiality and protect the privacy of clients. This section should outline the handling and storage of client records and any exceptions to confidentiality, such as mandated reporting requirements. 7. Termination: The agreement should include provisions for termination by either party, including notice periods, reasons for termination, and any financial or legal consequences of termination. Types of Pennsylvania Independent Contractor Agreement Between Licensed Counselor and Therapist and Licensed Counselor and Therapist Practicing as a Solo Practitioner may include variations based on the specific nature of the counseling or therapeutic services provided. For instance, there could be separate agreements for individual counseling, marriage and family therapy, addiction counseling, or specialized practices like art therapy or trauma-focused therapy. It is crucial for both parties to consult legal professionals when drafting or reviewing this agreement to ensure compliance with state laws and to protect their rights and interests.
