Independent contractor

Johana 1

Can we pay an independent contractor any way we like ( hourly, monthly, weekly)? We have an independent contractor right now that we pay a monthly amount for services. His contract is over and we would like to extend the terms. He is ok with that. However he would like to cahnge teh contract from a monthly amont to an hourly amount. He would like to have more freedom and have a day off if he wants to.
Any suggestions
Thanks

flaroyale

If he is a true independent contractor and not an employee the days, times, job, and price of job would be decided between the contractor and the person contracting the work. The contractor would have the liberty to take what ever days off they want as long as they complete the work they were contracted to do in the time frame they were contracted to complete the work in. I personally have never heard of paying an independent contractor by the hour. That sound more like an employee to me. I have always thought being an independent contractor meant being able to set your own time, work for more than one company at a time and set your own price per job.

TN HR

Technically, an independent contractor should bill you at whatever terms he/she wants. You should not dictate those terms.

It doesn't sound like this guy is really an IC. I say that because one of the tests used to determine IC vs. employee/employer relationships is the schedule/time off scenario you eluded to. If he were truly an IC, then he takes off whenever he wants to as long as at the end he meets the service level agreement.

Gene

marc

There are lots of independent contractors that can bill by the hour. Attorneys, consultants, construction contractors, etc. This is often referred to as a Time and Materials contract. Of course, their is a test as to whether or not they qualify as a contractor and if they do not and you are caught, the penalties can be quite severe.