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?
Title: South Dakota Independent Contractor Agreement Between Licensed Counselor and Therapist and Licensed Counselor and Therapist Practicing as a Solo Practitioner Introduction: In South Dakota, the Independent Contractor Agreement is an important legal contract that establishes the working relationship between a licensed counselor and therapist and a licensed counselor and therapist practicing as a solo practitioner. This agreement outlines the terms and conditions under which the independent contractor will provide counseling and therapy services to clients. Various types of Independent Contractor Agreements exist in South Dakota, depending on the specific circumstances and needs of the involved parties. 1. Key Components of the Independent Contractor Agreement: — Identification of the parties involved: The agreement clearly states the names, addresses, and contact information of both the licensed counselor and therapist as well as the licensed counselor and therapist practicing as a solo practitioner. — Scope of services: This section defines the specific counseling and therapy services the independent contractor will provide. It outlines the areas of expertise, techniques, and modalities used in the practice. — Duration of the agreement: The agreement specifies the start and end dates or duration during which the independent contractor will provide their services. — Payment terms: This section details the financial aspects, including the compensation structure, payment schedule, and any additional expenses or reimbursements. — Confidentiality and privacy: The agreement includes provisions to maintain client confidentiality, respecting their privacy and protecting sensitive information. — Indemnification and liability: These terms outline the respective responsibilities and liabilities of both the parties involved, ensuring protection from legal claims or damages. — Termination clause: This section identifies the conditions under which either party can terminate the agreement, such as breach of contract, non-performance, or mutual agreement. 2. Types of South Dakota Independent Contractor Agreements for Licensed Counselor and Therapist Practicing as Solo Practitioners: a. General Independent Contractor Agreement: This is a standard agreement for most licensed counselor and therapist practitioners who offer their services independently without any specific specialization. b. Specialty Specific Independent Contractor Agreement: This type of agreement is tailored to match the particular area of expertise or specialization of the licensed counselor and therapist, such as pediatric counseling, addiction counseling, marriage and family therapy, etc. c. Short-term Independent Contractor Agreement: This agreement is designed for temporary or project-based assignments where the independent contractor is hired to cover a specific period or task, such as maternity leave coverage or short-term clinical assistance. Conclusion: South Dakota Independent Contractor Agreements between licensed counselors and therapists and licensed counselors and therapists practicing as solo practitioners play a crucial role in defining the terms and conditions of their professional working relationship. By addressing the necessary legal aspects within the agreement, it ensures a clear understanding of professional obligations, responsibilities, and safeguards the interests of all involved parties. It is advisable for both parties to review and consult with legal professionals to ensure compliance with South Dakota laws and regulations.
