The agreement should state that the independent contractor, not the employer, is responsible for withholding any necessary taxes. In addition, have the independent contractor submit invoices.

Click here for a contract template. Please contact Katrina Chapman regarding contracts greater than $5,000 or with any significant potential risk (i.e. involving children, boats, alcohol, animals, etc ...

The terms in each independent contractor agreement vary considerably, so employers will need to closely examine the relevant agreement if they are thinking about terminating an independent contractor.