Independent Contractor Agreements – Classified as an employee 1099 by the IRS, is a person or entity that is paid to provide a service. Examples include entrepreneurs, healthcare professionals, lawyers, etc. Employment contracts usually have specific contractual terms such as effective date, type of employment, termination, termination, dispute resolution procedures, applicable law, and severability. Employment contracts are valid as long as a person is employed in your company. In most cases, it is usually not necessary to rewrite employment contracts every year. If an employee is promoted, you may want to consider updating their job description and asking them to sign the updated form. In principle, all employees should sign an employment contract. However, the terms of your agreement may vary depending on the type of employee you hire. Here is a breakdown of the most common types of employees: The fourth article will attempt to define how much the employer will pay the employee to perform his or her duties. Find the article entitled “IV. Numbers”. Use the first two empty lines to document the amount of money the employer will pay the employee (specify this number as words on the first line and numerically on the second line). In addition to specifying this number, you must define whether this amount is an hourly rate or an annual salary.
Check the “Per hour” box if the amount you report is paid to the employee on an hourly basis, or the “Salary on an annual basis” checkbox if the number you enter is the total amount the employee receives each year, regardless of the number of hours they work. We also need to record how often the employee receives compensation. Five options are available. Simply check the “Weekly”, “Biweekly”, “Monthly”, “Quarterly” or “Annual” box to consolidate how often the employee receives a paycheque. There will be a few additional areas available to cover the employee`s compensation, but these points only need to be met if they apply to the current agreement. If the employee receives a commission, note how many times they receive a commission for the first blank line of the section titled “A.”). Commissions. You should also document the exact method by which each commission payment to the employee is calculated using the second set of blank lines. If the employer intends to grant a bonus, look for the next point (“B.”) Bonus) and note how often the bonuses are paid to the employee (p.B quarterly). Also, be sure to define how bonuses are calculated by describing the calculation on the second set of empty rows. If the employer intends to give the employee the opportunity to participate in and use the benefits put in place by the employer, look for the blank lines under “V. Employee Benefits”.
List each benefit the employer wants to provide to the employee on these lines. Some employers and employees will agree that certain expenses paid by the employee while working may be reimbursed by the employer. If this is the case, check each box with an item that the employer has given to the employee for payment in “VI. Pocket. You can select “Travel”, “Food”, “Accommodation” and/or “Other”. The last check box (“Other”) displays a blank line in which you must define which expenses are reimbursable. In “VII.”, check the first box if the employee is not a partial owner of the employer`s business. If so, mark and attach the special features in a well-labeled signed and dated attachment. Many employers require a period of time after hiring during which the employee must demonstrate competence before having access to benefits, vacation, personal days, and/or medical leave. Find the blank line in “VIII. Trial period”, then enter the number of days that must elapse after the employee`s hiring date before they can use the employer package offered.
The article entitled “IX. Vacation Time” includes a default language to assign a certain number of vacation days that the employee can use during the work year. Note this number of days on the blank line in this paragraph. The question of what happens to unused vacation days is often a concern of employees. This article also attempts to resolve this issue by using a checklist. Select the check box attached to the statement that best describes how the employer handles unused vacation days. This allows you to quickly indicate whether unused vacation days are “converted to cash,” “eligible for rollover,” “expire at the end of the year,” or processed “otherwise.” Note that some of these options require additional information. So, if unused vacation days can be redeemed, include the dollar amount paid for each unused day in the blank line in the first place. If unused vacation days are transferred, you must specify how many days can be transferred to the available space in the second choice. If they expire completely, mark the third statement. If you selected “Other”, you must describe exactly how unused vacation days are treated in the blank line provided.
The following article, “X. Personal Vacation,” is used to document the number of days an employee can use for personal or medical leave. Specify this number of days on the first blank line of this article. Indicate whether or not the employee will be paid on personal days by checking the first box (“Paid”) or the second checkbox (“Unpaid”). .