Independent Contractor Agreement

[Bill S]

Does anyone have an independent contractor agreement they would be willing to share. I know I've seen the topic before but couldn't find it on a search.

If you would like to email it, I'm at email@nwappraisals.com

Thanks

Bill

 

[Richard Carlsen]

Sorry Bill, I don't but after having read the IRS rules on what constitues an Independent Contractors, I would say, for arguments sake, that an appraiser cannot work exclusively for another appraiser and be an independent contractor.

Something to think about if you are planning on taking someone on board. And it might generate some discussion.

 

[Ghost Rider]

I had the same argument with my ex-mentor, when he wanted to sign an exclusivity agreement. I signed it, since it would never have held up in a court of law.

 

[Jo Ann Meyer Stratton]

See some interesting comments over at http://www.naifa.com/chat in their General Chat room.

 

[Richard Carlsen]

An "exclusivity agreement" makes you an employee: FICA, withholding, unemployment, the whole works.

Heres one of the things that the IRS says about an IC:

Who is an Independent Contractor?
A general rule is that you, the payer, have the right to control or direct only the result of the work done by an independent contractor, and not the means and methods of accomplishing the result.

Here's a list of 20 questions that I copied a while back regarding determination of Independant Contractor status.

Common Law Rules
The following are a list of 20 questions the IRS uses to determine if a worker is an independent contractor or employee. The answer of yes to any one of the questions (except #16) may mean the worker is an employee.
1. Is the worker required to comply with instructions about when, where and how the work is done?
2. Is the worker provided training that would enable him/her to perform a job in a particular method or manner?
3. Are the services provided by the worker an integral part of the business' operations?
4. Must the services be rendered personally?
5. Does the business hire, supervise, or pay assistants to help the worker on the job?
6. Is there a continuing relationship between the worker and the person for whom the services are performed?
7. Does the recipient of the services set the work schedule?
8. Is the worker required to devote his/her full time to the person he/she performs services for?
9. Is the work performed at the place of business of the company or at specific places set by the company?
10. Does the recipient of the services direct the sequence in which the work must be done?
11. Are regular oral or written reports required to be submitted by the worker?
12. Is the method of payment hourly, weekly, monthly (as opposed to commission or by the job?)
13. Are business and/or traveling expenses reimbursed?
14. Does the company furnish tools and materials used by the worker?
15. Has the worker failed to invest in equipment or facilities used to provide the services?
16. Does the arrangement put the person in a position or realizing either a profit or loss on the work?
17. Does the worker perform services exclusively for the company rather than working for a number of companies at the same time?
18. Does the worker in fact make his/her services regularly available to the general public?
19. Is the worker subject to dismissal for reasons other than non-performance of the contract specifications?
20. Can the worker terminate his/her relationship without incurring a liability for failure to complete the job?

 

[spettifer]

I know in the early 1990's the IRS came down on some appraisal companies and basically put them out of business after finding their IC's to be employees. Has anybody heard of any appraisal companies that have been busted over the last five years or so? I have not heard of any. The reason that I ask is about 4 years ago I converted the few appraisers in my office from IC to employees. With California Workmans Comp rates and other employer costs it's been a tough and expensive road. It's to bad we don't have the same clout as Realtors who the IRS has classified in house agents as IC's.


Scott

 

[Ghost Rider]

Always wondered how the Brokers got away with that.....Guess NAR has more power than we do - Guess thats not as much of a suprise as it should be!!!

 

[Syd Warburton]

Actually Scott,

It is not the IRS that has classifed Realtors as non employees. They are classifed as statutory non employees by an act of the legislature. I did the opposite of what you did. In February I reclassified all of my appraisers as ICs and its been the best decision I have made. I made it clear to them that they are free to accept work from other sources and I encouraged them to develop their own business. If they want my eyes on their reports, then its 50% to the house. And of course, its 50% to the house for the work I provide them. They all now work out of thier own homes and the result has been a decrease in gross revenues of 31%, due to the extreme boom last summer, but an increase in net profit for yours truly of 168%!!.

 

[wyecoyote]

11. Are regular oral or written reports required to be submitted by the worker?

Darn guess all appraisers are employees. Since we submit written reports.

 

[Syd Warburton]

The IRS guidelines are to be taken in their totality not individually. Meeting one rule does not make one an IC, just as not meeting one rule does not make one an employee. Believe me, I spent enough money on lawyers and accountants before making this very tough decision.