Do independent contractors need a contract?

For most types of projects you hire an independent contractor (IC) to do, the law does not require you to put anything in writing. You can meet with the IC, agree on the terms of your arrangement, and have an oral contract or agreement that is legally binding.

Do I need a business license to be an independent contractor in NC?

North Carolina Law reads as follows: “To work as a general contractor on projects costing more than $30,000 in North Carolina, you must get a license from the North Carolina Licensing Board for General Contractors.

What is an independent contractor in NC?

An independent contractor is a worker who provides goods or services to another individual or business through an agreement. The terms of the agreement (which does not have to be written) control the relationship, and the independent contractor treats the other party like a customer or client, rather than an employer.

Who signs an independent contractor agreement?

An independent contractor agreement is a legally binding document signed by a 1099 employee and the company that hires them. It outlines the scope of work and the terms under which that work will be completed, which goes a long way to making sure both parties are on the same page about the project from the start.

Do independent contractors set their own pay?

You define the work hours: Generally, independent contractors do the job as they see fit. They set their own hours and work how and when they want. And they should be paid by the project — never on an hourly basis.

Can an employer withhold taxes for an independent contractor?

Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors.

Who is an independent contractor in North Carolina?

The North Carolina independent contractor agreement is used to establish the terms by which a contractor will complete a project for a client. Under common law, any individual or business that operates independently and works outside of a client’s normal course of business can qualify as an independent…

What makes a person an independent contractor or employee?

Such facts as the place where work is performed, the absence of a formal employment agreement, or whether an alleged independent contractor is licensed by State/local government are not considered to have a bearing on determinations as to whether there is an employment relationship.

Is the North Carolina Wage and Hour Act an employee?

The Act covers such homeworkers as employees and they are entitled to all benefits of the law. is also used by the North Carolina Department of Labor, Wage and Hour Office, for the administration and enforcement of the North Carolina Wage and Hour Act.