Have income, social security and Medicare taxes withheld from their paychecks. The employer is also responsible for paying unemployment taxes. Employers also issue a W-2 statement at the end of the year showing the total amount of taxes that have been withheld.
Organizations with whom independent contractor works issue a 1099 form showing the total amount of money that has been paid over the course of the year. Independent contractor is responsible for paying his or her income and self-employment taxes
Business expenses are reported annually on income tax return and do not have to amount to any specific percentage of the independent contractor’s adjusted gross income
Courts have occasionally sided with employees if an implied contract existed. Employer manuals, policies, past practices, promotions, commendations can be used as evidence that implied contracts exist.
Some confidentiality provisions state that confidential, proprietary, and trade secret information not be disclosed to third parties. It is important to get the issues clarified so that potential breaches of confidentiality are minimized.
Delineates payment that will be rendered once agreed-to-services are provided.
With bonus payments it is important to decide whether they are coming from profit that is generated from services provided by APN, the productivity of the APN, the quality of care of the APN or some combination thereof.
Be sure bonus payments are reasonable, regularly audited and do not benefit one party over another.
When parties disagree there should be a process by which they resolve their differences. Sometimes this involves mediation or arbitration as an alternative dispute mechanism. The parties need to state if this arbitration is binding. This process must be concluded prior to filing a cause of action in court.