Hired Help a.k.a. Independent Contractor help

jarboedoggart · October 9, 2012

Morning everyone. Went through the process of starting and official LLC a few months ago and and have been working through all the details I never worried about before. Question for today is regarding hired second shooters/assistants.

With hired help, my accountant instructed me to get a W9 as well as a Independent Contractor Agreement. The W9 was easy to find obviously, but after looking at Contractor Agreements, they are all pretty different and seriously long and complicated with a lot of customization to be done.

Anyone have a photography-related Contractor agreement I could borrow the wording off of?

Thanks in advance.

jarboedoggart · October 9, 2012

no one?

Sam · October 15, 2012

This is a very difficult area.

As far as I know I don't believe you need / no legal requirement, to have any kind of independent contractor agreement. I also don't think one would help if the IRS determined that the person you paid was an employee not an independent contractor.

You do need a W9 and need to fill out a 1099 if you paid an independent contractor $600.00 or more. If you paid less you don't need to report it.

Now as to who is an independent contractor, that is a horse of a different color. If you read the IRS definition of an independent contractor one could easily determine no such entity exists.

Sam

ian408 · October 15, 2012

Actually Sam, an Independent Contractor agreement would be beneficial in the case of a dispute regarding status. It will clearly outline what's expected, pay rate and so forth. The IRS doesn't care about that but you might should a dispute arise. As others have suggested, you need the correct forms and should also keep track of hours and assignments to be sure you do not end up having to provide benefits unless that's what you intend to do (you're clearly a very small operation and probably would be exempted but it never hurts to check).

Google 'independent contractor agreement photography' and you'll find many examples. You might also want to read this for some additional advice.

Oh. And as you're consulting with an accountant for your business, so should you consult with an attorney once you decide on an agreement.

Sam · October 15, 2012

ian,

You are right about having something in writing when hiring someone. I was only directing my comments with regard to the IRS.

Just for fun try reading the IRS criteria for an independent contractor. If I interpret their definition there is no such thing as an independent contractor.

Since the OP and most of us here are one person operations the IRS will probably not be investigating us. The scary word is "probably".

Sam

ian408 · October 15, 2012

Sam wrote: »

ian,

You are right about having something in writing when hiring someone. I was only directing my comments with regard to the IRS.

Just for fun try reading the IRS criteria for an independent contractor. If I interpret their definition there is no such thing as an independent contractor.

Since the OP and most of us here are one person operations the IRS will probably not be investigating us. The scary word is "probably".

Sam

It's pretty simple to tell. I forget what the percentage of the contractor's billable hours are but if that percentage is greater, then your contractor starts looking like an employee, when you supply the equipment needed to do the job and/or you provide the detail how the job is to be performed and/or you provide things like meals or access to celebratory events, your contractor starts looking like an employee. Now if your contractor fails to pay his or her taxes and these conditions are met, guess what?
There are also conditions like length of contract too and how salary/rate is set. But the simple way is to say "if it looks like a duck, quacks like and duck, and walks like a duck; it is a duck!".

jarboedoggart · October 16, 2012

Thanks for the replies everyone. I will be consulting with an attorney with the final product, but here is what I came up with. I will post it hear so future searchers can get some info.

First Draft:
https://docs.google.com/document/d/1YAo-UUHqVolNdfcKojZ25EhxVcLCLUTReYAycDN5lWQ/edit

Ferguson · October 23, 2012

Ask about a specific provision on workman's comp and other required provisions in your state that otherwise may come back to you (liability is mentioned but is for acts they commit). You may also want to talk to your own business insurer to see if they have specific requirements you must meet when hiring out work.

Hired Help a.k.a. Independent Contractor help

Comments