Ohio Independent Contractor Agreement

An Ohio independent contractor agreement is a document that defines the relationship between a contractor and a client. It states that the contractor will provide specific services over a defined period or until a project is completed in exchange for compensation.

Independent Contractor Definition

An independent contractor in Ohio is an individual who provides services to an employer for compensation that is reported as income other than wages.

On the other hand, an employee is a worker who is employed by an employer to provide services for compensation that is reported to the IRS as income from wages.

An independent contractor is a compensated worker who doesn’t meet the requirements of an employee according to the 20-factor common law test, which we explore below.

Worker Classification Test

Ohio utilizes the 20-factor, common-law right-to-control test to determine the existence of an employer-employee relationship.

The 20 factors considered in this test are:

1. The level of instruction the worker receives from the employer
2. The amount of company-provided training provided to the worker
3. The worker’s degree of business integration
4. The extent to which the worker can assign or outsource the provided services
5. The existence of assistance provided to the worker by the employer
6. The continuity of the worker-company relationship
7. The flexibility of the worker’s schedule
8. The demand of the company for full-time work
9. The need for on-site services
10. The requirement for work to be performed in a specific sequence
11. The requirement for the worker to provide project reports
12. The method of payment utilized
13. The reimbursement of travel or business expenses
14. The provision of materials and tools
15. The worker’s investment in work facilities
16. The worker’s realization of profit or loss
17. The worker’s choice to work for multiple companies
18. The worker’s choice to make their services available to the public
19. The company’s control over the worker’s discharge
20. The worker’s right of termination

Consideration of each factor and the situation as a whole can imply a worker is an employee or an independent contractor.

Rights and Responsibilities

Ohio work rights are generally based on an employee classification. Since independent contractors are, by definition, not employees, they lack most rights associated with employees.

For example, independent contractors in Ohio generally have no right to:

• Overtime pay
• Minimum wage regulations
• Retirement contributions

State Taxes

Ohio’s individual income tax is graduated, with rates between 2.765% and 3.99. [1] Some Ohio jurisdictions collect local taxes.

Additionally, independent contractors must pay federal self-employment taxes of 15.3%. [2]

Filing for Unemployment

Independent contractors generally cannot file for unemployment in Ohio (Ohio Revised Code § 4141.01).

Sample

Below, you can download our Ohio independent contractor agreement in PDF or Word format: