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?
Wayne, Michigan is a city located in Wayne County, known for its close-knit community and thriving professional environment. In this bustling city, the need for mental health services is ever-growing, making Wayne an ideal place for licensed counselors and therapists to establish their practices. An Independent Contractor Agreement between a licensed counselor and therapist and a solo practitioner is a crucial legal document that outlines the terms and conditions of their professional relationship. Such an agreement is necessary to ensure clarity and protection for both parties involved. There are several types of Independent Contractor Agreements that can be utilized in Wayne, Michigan. These agreements may vary depending on the specific circumstances and needs of the counselor or therapist. Some common types include: 1. Traditional Independent Contractor Agreement: This type of agreement outlines the essential terms, such as payment, scope of work, and confidentiality. It clearly defines the rights and responsibilities of both the licensed counselor and therapist and the solo practitioner. 2. Non-compete Independent Contractor Agreement: In some cases, a solo practitioner may require exclusivity from a licensed counselor or therapist. This agreement includes provisions that restrict the contractor from providing services to competing practices within a specific geographic area or timeframe. 3. Referral Independent Contractor Agreement: When a solo practitioner refers clients to a licensed counselor or therapist, a referral agreement can be established. This agreement elucidates the referral process, compensation models, and any other relevant terms. 4. Part-Time Independent Contractor Agreement: If a licensed counselor or therapist wishes to work with a solo practitioner on a part-time basis, this agreement suits their flexible schedule. It specifies the number of hours, days, or clients the contractor will handle. 5. Specialized Independent Contractor Agreement: Occasionally, specific therapeutic modalities or niches require unique contractual arrangements. For instance, if a licensed counselor or therapist specializes in trauma-informed therapy, an agreement might contain additional considerations related to privacy and client care. Wayne, Michigan is an engaging community for mental health professionals aiming to practice as solo practitioners or enter into independent contractor agreements. By signing a thorough and well-structured agreement, licensed counselors and therapists can build successful professional relationships with solo practitioners while maintaining legal protection and transparency.
