Independent Contractor Agreement Utah

An independent contractor agreement in Utah formalizes the relationship between an employer and a contractor.3 min read

An independent contractor agreement in Utah formalizes the relationship between an employer and a contractor. This agreement protects both parties and helps both the employer and the contractor understand their responsibilities.

Basics of Independent Contractor Agreements

When an independent contractor agrees to provide services to a business entity or an individual, an independent contractor agreement makes the arrangement legally binding. An important thing to understand about independent contractors is that they are not employees, so they won't receive benefits that normal employees would enjoy.

Using an independent contractor agreement is the best way to outline what services the contractor will provide and any terms and conditions that apply while they are rendering services. Without an independent contractor agreement, the contractor may have a hard time determining what work they should perform, the compensation they will receive, or the terms with which they must comply.

Contractor agreements are especially beneficial to the business or individual that needs to hire the contractor. The independent contractor agreement proves that the contractor is not actually an employee and will also make it easier to terminate the relationship with the contractor if something goes wrong.

When writing an independent contractor agreement in Utah, it is important to include clauses that:

  1. Identify all parties in the contract.
  2. Outline the services the contractor will offer.
  3. Define the length or term of the agreement.
  4. State what the contractor will get paid.
  5. Discuss what expenses the contractor must pay and what the covered expenses will be.
  6. State that the contractor is not an employee and is not entitled to the benefits of an employee.
  7. Outline how to end the contract early.
  8. Prevent the contractor from revealing any information they learn about the business during the term of the agreement.

Should You Hire an Independent Contractor or an Employee?

As your business grows, you will need help keeping up with your daily workload. While you could give up some equity in your company to get help, the better idea is to hire either an independent contractor or an employee.

On the surface, it may seem like there's no difference between independent contractors and employees. Take a closer look, however, and you'll see that there are some major differences between the two. Understanding these differences will help you decide which you should hire.