A West Virginia independent contractor agreement is a document that specifies how a contractor will deliver work to a client. It differs from a traditional employee contract in that it doesn’t offer benefits, but it still outlines the responsibilities of both parties.
- Worker Classification: ABC Test
- Tax Structure: Graduated-Rate Income Tax
- Definition: West Virginia Employment Law Worker Classification Act § 21-5I-2
- At-Will Employment: Yes
Independent Contractor Definition
According to the West Virginia Employment Law Worker Classification Act, an independent contractor is an individual who completes work for a client, and the client only has the right to control the final result of the work. Clients can’t control independent contractors’ methods for completing their work.
Worker Classification Test
West Virginia uses the ABC test to determine whether a worker falls into the employee or independent contractor category. [1] If an individual satisfies the following three prongs, they’re an independent contractor:
- A: The employer does not have direct control and direction over what the employee does or how the employee completes basic work tasks.
- B: The service performed by the employee does not fall under the business’s usual scope of activities.
- C: The worker performs tasks typically handled by independent workers or contractors.
Workers who fall outside of these descriptions should receive the classification and benefits of working as an employee, not an independent contractor.
Rights and Responsibilities
Independent contractors in West Virginia have the right to govern their own work tasks, including deciding where and when they complete most of their work duties. They can decide who performs the work and if they want to outsource it to someone else. Often, independent contractors will perform work for more than one business at the same time.
State Taxes
West Virginia has a graduated state income tax rate that independent contractors must pay. Independent contractors will also need to pay the federal income tax and self-employment tax, which covers Social Security and Medicare taxes.
Filing for Unemployment
Independent contractors in West Virginia cannot file for unemployment. However, if they believe a company misclassified them, they can apply for unemployment to see if they qualify.
Sample
Download a West Virginia independent contractor agreement as a PDF or Word file below:
