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SERVICES AGREEMENT NO.45000XXXXX (INDEPENDENT CONTRACTOR) This SERVICES AGREEMENT (Agreement) is made and entered into as of EFFECTIVE DATE (Effective Date), by and between SACRAMENTO MUNICIPAL UTILITY
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Gather all necessary information about the independent contractor, including their legal name, address, and social security number.
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Obtain a W-9 form from the independent contractor and ensure it is filled out accurately.
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Determine the correct classification of the independent contractor, whether they should be treated as an employee or a self-employed individual, based on IRS guidelines.
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Consult with a lawyer or tax professional to ensure compliance with all legal requirements and regulations regarding independent contractors.
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Prepare a written agreement or contract outlining the terms and conditions of the independent contractor's work, including payment terms, project scope, and duration.
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Keep detailed records of all payments made to the independent contractor and any related expenses for tax purposes.
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Issue a Form 1099-MISC to the independent contractor by January 31st of the following year, reporting the total amount paid to them during the previous tax year.
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Communicate regularly with the independent contractor to ensure a clear understanding of their responsibilities and to maintain a professional working relationship.

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An independent contractor is a person or entity hired to perform work or provide services for another party as a non-employee.
Businesses and individuals who hire independent contractors are required to file information returns with the IRS.
You can fill out the necessary forms, such as Form 1099-NEC, to report payments made to independent contractors.
The purpose of using independent contractors is to outsource specific tasks or projects to individuals or entities with specialized skills.
Information such as the contractor's name, address, and taxpayer identification number must be reported on independent contractor forms.
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