Updated February 14, 2022
A Hawaii independent contractor agreement is a document used by a client upon the hiring of an independent contractor. The hiring party can draft an agreement to create a clear description of the services they require and the compensation to be afforded. In creating a contract, the client affirms that the contractor is well informed of the obligations which must be satisfied in order to receive payment for their services. Drafting an agreement further aids the client by establishing the worker as an independent contractor and not a standard employee. Clients that misclassify independent contractors are not only required to withhold a portion of the individual’s salary for tax purposes, but they may also be liable to pay additional percentages on the taxes withheld.