The exact language and sections included in your contract may vary by industry, customer type, and location. While your contract may contain much more information, here are seven general sections that should be included in any contract between an independent contractor and a client. An independent contractor contract allows the hiring company and the contractor to describe in detail what is expected and why the contractor is not an employee for legal and tax reasons. Typically, the IRS treats independent contractors as self-employed and their income is subject to self-employment tax. On the other hand, if there is an employer-employee relationship, the hiring company is responsible for medicare and social security taxes. Specifically, according to IRS rules, the following professions are legally independent contractors: Benefits: The contractor cannot participate in the retirement, health, vacation, sickness, or unemployment benefits of the paid employee If the contractor`s salary is submitted in exchange for each service provided by the contractor, check the second checkbox and note the D payable for each service. ollarbetrag in the blank row that contains this choice. Another common payment method is a predetermined commission. If the independent contractor is paid on commission, check the third box. A pair of blank lines attached to this option will require your report on what the commission is. Be sure to record the specific percentage that defines the commission and what that percentage applies to. The final selection in this section gives you the freedom to define how the independent contractor`s compensation is calculated.