Updated February 15, 2022
A Michigan independent contractor agreement establishes a business relationship between a business/individual/entity and a contractor. This legally binding document is comprised of terms and conditions negotiated by both parties regarding services rendered by the contractor in exchange for compensation. Since an independent contractor is not an employee of the hiring party, their status must be made clear in the agreement. An independent contractor has more responsibility, such as taxes, workers’ compensation, and insurance, which often makes the relationship more beneficial to the hiring entity than an employee.
“Independent Contractor” Definition – As of 2013, Michigan independent contractors are defined by the IRS 20 Factor Test.