A Kansas independent contractor agreement outlines the task that a client hires a contractor to complete, the payment terms in addition to other expenses to be covered, and the due date for the contract. After the document is signed, copies of it should be kept for future reference.
Hiring independent contractors for your business can be a good move. It allows you to work with others who can enhance your business. However, the laws defining what makes a worker an independent contractor are very strict. When creating your independent contractor agreement in Kansas, it is important to ensure you follow the law.
- Worker Classification: ABC Test
- Tax Structure: Graduated-Rate Income Tax
- Definition: § 44-703 (i)(1)(B)
- At-Will Employment: Yes
Independent Contractor Definition
When creating an independent contractor agreement in Kansas PDF, you must understand the legal definition of employee and independent contractor. Kansas defines an employee as someone who works for another who controls their job performance [1] .
An independent contractor is defined as a worker who operates outside of a business, providing services according to an employment agreement, over whom the employer has no direct control.
Worker Classification Test
Classifying workers correctly is imperative to avoid penalties and legal issues. To ensure a worker is an independent contractor, the state uses the ABC test, which has three points:
- How much control the employer has over the worker.
- Whether the work is integral to the function of the business.
- If the worker is in a trade, business, or profession outside of the business.
Rights and Responsibilities
Independent contractors have the right to conduct their job duties as they wish without direct control by the employer. They are a separate entity and conduct business as such. However, contractors generally do not have the right to various benefits or other perks, such as paid vacation and health insurance, offered by employers to employees.
State Taxes
A Kansas independent contractor agreement should also pay attention to taxation. Employers do not withhold taxes for contractors. Kansas follows the IRS rules for taxation.
The IRS establishes someone is an independent contractor when the employer does not control the behavior or finances of the worker, and the business relationship is independent of the actual business operations.
The IRS has a 20-point test to completely assess all business relationships and determine whether a worker is an actual independent contractor. The test covers all aspects of how much control the employer has over the worker and the complete freedom of the worker to make determinations about his or her work.
Filing for Unemployment
Because they do not work directly for an employer, independent contractors have no rights to claim unemployment under Kansas law [2] . Employers pay into this system to provide benefits only to employees.
Compensation for Work Injuries
Independent contractors also have no claims to workers’ compensation from the employer. Workers’ compensation benefits come from insurance the employer buys. It is possible for a contractor to purchase their own insurance coverage, which would then allow them to claim benefits if they suffer an injury while working.
Sample
Download our free Kansas independent contractor agreement template below and start creating your contract.
