Did you know an independent contractor
is a self-employed businessperson? The company you contract
for is not your employer. The contracting company is only
contracting for your services to accommodate the transportation
service needs of its customers.
1. Am I an Employee?
No, you have contracted your services as an Independent Contractor.
2. What is an independent contractor?
An independent contractor is a self-employed individual who
is free to perform a job in his or her own way. This means
you are your own boss and are generally free to choose method
of work. You are responsible to see that services are rendered
in a timely manner and in compliance with customer requests.
You are required to comply with the terms of your agreement
with the contracting company and that the contracting company
receives all required paper work.
3. Who is responsible for the equipment I use and the
expenses incurred in providing services?
As an independent contractor, you are responsible to provide
your own equipment tools, and supplies to perform the job
you contracted to perform. You are also responsible for all
expenses incurred while operating the vehicle such as gas
and oil and payment of all your own taxes including social
security, and worker's compensation (if applicable).
4. Does the contracting company withhold income tax from
the moneys due me?
No, taxes are not withheld and you will receive a 1099 at
year-end. You may take advantage of NICA's federal income
tax escrow program and have funds taken from your settlement
check and submitted to the IRS on a quarterly basis.
5. Does the contracting company give instructions or training
in how to perform services?
No.
6. Is the contracting company's dispatcher my supervisor?
No.
7. Must I provide services only to the contracting company
I signed on with?
No, as an independent contractor, you are entitled to provide
services to other companies.
8. Must I accept every job offered to me?
No. Independent contractors have the right to accept or reject
any job offer. However, once accepted, the independent contractor
is expected to complete his/her contractual obligations. It
is in your best interests to inform the contracting company
in advance of your availability. The more you keep in touch
with the contract company, the more contract work you get.
9. Am I required to perform services personally?
No. The independent contractor may hire assistants or substitutes
to help complete the job. But the compensation, insurance
and taxes for the assistant are your responsibility.
10. Am I entitled to negotiate the rate of compensation
for each job?
Yes, independent contractors have the right to negotiate an
agreed upon rate of compensation with the contracting company,
and then will complete services based on that rate of compensation.
11. Can the contracting company or I terminate the contract
before the services are complete?
A contract may only be terminated immediately with good cause.
Otherwise, both the contracting company and the independent
contractor are obligated to give appropriate notice. (i.e.
agreed upon advance notice in contract)
