A Mississippi independent contractor agreement is a legal document between a non-employee worker and an employer for a project or job. It outlines the deadlines, scope, and payment schedule for freelance work. Independent contract agreements are also called consulting or service agreements.
- Worker Classification: Common Law Test
- Tax Structure: Flat Income Tax
- Definition: § 71-3-3(r)
- At-Will Employment: Yes
Independent Contractor Definition
According to Miss. Code § 71-5-11 (J), a worker is assumed to be an employee by default.
However, they can rebut the presumption by showing that they have been and will continue to be free from the alleged employer’s direction and control when performing services.
Worker Classification Test
When determining worker status, Mississippi courts look at several factors:
- How much control the alleged employer has over the work.
- Whether or not the alleged employee operates a distinct business or occupation.
- The skill needed by the worker’s occupation.
- Who is responsible for providing a workplace and tools for the worker.
- How long the worker has been employed.
- Whether the payment is by the job or by the time.
- Whether the work is part of the employer’s regular business.
The main factor is the degree of employer control over the alleged employee’s work.
Rights and Responsibilities
Independent contractors do not have any unique rights, unlike employees.
State Taxes
Independent contractors are responsible for filing their own taxes using Form 1099-NEC [1] . On the other hand, employees are not responsible for withholding required taxes. Employers will withhold the required taxes on their behalf.
According to Miss. Code § 27-7.303, an employee is someone subject to the income tax who performs or performed services for an employer. An employer is someone who does business or derives income from sources within Mississippi and has control over the payment of wages to workers.
Filing for Unemployment
Independent contractors do not file for unemployment in Mississippi. Under Miss. Code § 71-5-11(J)(14), only employees can file for unemployment, and independent contractors are excluded from the definition of “employee.”
Compensation for Work Injuries
Independent contractors are explicitly excluded from the definition of employee. The Supreme Court of Mississippi uses two tests to determine worker status for workers’ compensation: the control test and the nature of the work test.
When applying the control test, the court looks at the following factors:
- Direct proof of the employer’s control over the worker
- Payment method
- Whether the employer provides the equipment
- Whether the employer has the right to fire
The court will consider the following when applying the nature of the work test:
- The nature of the worker’s service or business — how separate it is from the employer’s business, how skilled it is, and whether it can assume its own accident burden.
- The relationship between the worker’s service or business and the employer’s business — specifically, the duration of work, whether the work is intermittent or continuous, and the degree of overlap between the employee’s work and the employer’s work.
Sample
You can download our free Mississippi independent contractor agreement in PDF or Word format below and fill it out on your own:
