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?
Rhode Island Independent Contractor Agreement Between Licensed Counselor and Therapist and Licensed Counselor and Therapist Practicing as a Solo Practitioner In Rhode Island, many licensed counselors and therapists choose to practice as solo practitioners, providing mental health services to clients independently. To establish a professional and legal working relationship between licensed counselors and therapists, an Independent Contractor Agreement is crucial. This agreement outlines the terms and conditions that both parties must adhere to, ensuring a transparent and mutually beneficial arrangement. One type of Rhode Island Independent Contractor Agreement is specifically tailored for licensed counselors and therapists practicing as solo practitioners. This agreement sets forth the terms of engagement, including the scope of work, responsibilities, compensation, and termination procedures. It emphasizes the independent nature of the counselor or therapist's practice and highlights the absence of an employer-employee relationship. Key provisions typically found in a Rhode Island Independent Contractor Agreement between a licensed counselor and therapist practicing as a solo practitioner are as follows: 1. Identification of the Parties: The agreement begins by clearly identifying the licensed counselor and therapist and their solo practice as separate entities. It specifies their addresses and contact information for effective communication. 2. Scope of Work: This section details the services to be provided by the counselor or therapist, outlining the types of therapy offered, target population, and any specific modalities or techniques employed. 3. Independent Contractor Relationship: The agreement specifies that the licensed counselor and therapist are independent contractors and not employees of each other. This provision clarifies the absence of employer obligations such as taxes, benefits, or insurance coverage. 4. Compensation and Payment Terms: This section outlines the fee structure for the counselor or therapist's services, whether it is an hourly rate, session-based fee, or a percentage of billed amounts. It also addresses the frequency and method of payment, as well as any additional expenses that may be reimbursed. 5. Confidentiality and HIPAA Compliance: Recognizing the sensitive nature of client information, this provision ensures that both parties adhere to strict confidentiality standards and comply with the Health Insurance Portability and Accountability Act (HIPAA). 6. Termination and Renewal: The agreement specifies the conditions under which either party may terminate the contract, including notice periods and acceptable grounds for termination. It also provides an option for renewal or extension if both parties desire to continue the professional relationship. These are some essential provisions found in a Rhode Island Independent Contractor Agreement Between Licensed Counselor and Therapist and Licensed Counselor and Therapist Practicing as a Solo Practitioner. However, specific agreements may vary depending on individual needs and preferences. It is crucial for licensed counselors and therapists to consult with legal professionals familiar with Rhode Island laws to develop a comprehensive and legally binding agreement that protects their interests while ensuring a professional therapeutic relationship with clients.
