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5 Keys to Hiring Independent Contractors For businesses and HR teams looking to hire independent contractors, it’s often difficult to know where to start. Independent contracting is a widely used term, and it covers everything from a short-term contracted job like roofing or plumbing to the types of task-based, part-time relationships that have been labeled the “gig economy.”

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Guide 5 Keys to Hiring Independent Contractors

Likewise, while traditional employee onboarding paperwork tends to consist of the same list of forms, the independent contractor relationship is less clearly defined. Because of the wide range of situations that fall under the purview of an independent contractor relationship, there is no one-size-fits-all solution to an independent contractor agreement. However, following these five easy tips, you can help protect your business with a clear, fair contract.

1. Always use an independent contractor agreement. When you hire an independent contractor, you enter into a legal relationship with that contractor that is governed by rules, just like traditional employment. However, unlike your employees employment, for which your business always provides the employment paperwork, your independent contractor may provide their own contract.

In any case, you’ll need a written contract to form a shared understanding between you and your contractor. Your business is best prepared and best protected when you create a standard independent contractor agreement, and using it every time the need arises. This can help provide clarity and reassurance to both parties, and reduce misunderstandings.

2. Understand the benefits and limitations of independent contracting.Independent contracting is quickly becoming more widespread, especially with the kind of task-based, tech-oriented contracting that has been labeled the “gig economy.” If you’re not sure whether your business is looking for an employee or an independent contractor, consider the benefits and drawbacks. An independent contractor is generally hired for a

specific length of time or series of tasks, not indefinitely, and provides their own equipment to do the job.

Because you hire an independent contractor based on their results, you cannot specify the manner in which the contractor completes their work, and a contractor has no obligation to work exclusively with your company. There are real penalties for miscategorizing employees as independent contractors, so make sure to craft your contracts in a way that clearly follows the popular definition of an independent contractor.

3. Include these sections in your independent contractor agreement.• Identification and relationship of parties. This first clause names both the contractor and the client, and defines their relationship as that of an independent contractor, following the terms below.

• Terms of contract. The most substantial section of your independent contractor agreement, this clause clearly spells out the work to be done by the independent contractor, the dates and duration of the contract, the conditions for terminating the contract for either party, and whatever compensation is agreed upon by both parties.

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* Source: http://www.natlawreview.com/article/psychology-e-signatures-implications-jury-trials-and-client-counseling

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Guide 5 Keys to Hiring Independent Contractors

• Administration. How will this contract be enforced? In this section, your independent contractor agreement should include clauses identifying that document as the sole agreement between your two parties, overriding any other past verbal or written agreement. Additionally, independent contractor laws can vary from state to state, so it is important to define an area of jurisdiction for your agreement.

4. Get your independent contractor agreements signed with e-signatures.Your independent contractor agreement, like any written contract, is only relevant if it’s filled out and signed. Between you and your contractor, however, any number of things could go wrong. Paper is slow, delicate and expensive. And it’s unwieldy to print, transport and store. Thankfully, e-signatures are becoming extremely popular with businesses and HR teams as a way to send, sign and store important documents online. Especially useful for independent contractors, who may be busy on another job or located in another state, an e-signature solution such as RightSignature is an attractive way to get documents signed quickly and easily with a legally binding e-signature.

5. Treat independent contractors as well as your own employees.While independent contracting is often part-time or short-term, if your business relies on or works closely with independent contractors, it’s just as important to keep your contractors happy as it is to keep your regular employees happy. That includes recruiting, onboarding and gathering feedback from your contractors. Additionally, if you think your contractor may be unfamiliar with independent contracting, take some time to explain how it is different from traditional employment, especially regarding income tax. A happy contractor who trusts your company is just as likely to be become an advocate for your business as a regular employee.

Using a clear, fair independent contracting agreement, fully understanding what to expect from your contractor, and using e-signatures to get your contract signed effortlessly are all great ways to get your relationship with an independent contractor started off on the right foot.

To see for yourself how e-signatures can help you get independent contractor agreements — and any other document or contract — signed more quickly and easily, visit www.RightSignature.com.