Contractor (1099) Offer Letter

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Updated August 04, 2022

An independent contractor (1099) offer letter is between a client (employer) that hires a contractor to perform a service for payment. The scope of work should be included in the offer letter along with the rates for providing the service.

After the offer letter is signed, an Independent Contractor Agreement should be written between the parties.

Does an independent contractor pay their own taxes?

Yes, an independent contractor is liable to pay their own federal and state withholding taxes (26 CFR § 31.3121(d)-1).

Sample Contractor Offer Letter

CONTRACTOR OFFER LETTER

[EMPLOYER’S NAME]
[STREET ADDRESS]
[CITY, STATE]
[ZIP CODE]

Date: [DATE]

Dear [CONTRACTOR’S NAME],

[COMPANY NAME] (“Company”), is pleased to offer you employment as a 1099 independent contractor in accordance with the terms below:

I. POSITION.

  • Title. [POSITION TITLE]
  • Duties. [ENTER RESPONSIBILITIES]

II. TERMS.

  • Supervisor. [NAME]
  • Start Date. [DATE]
  • End Date. ☐ Indefinite ☐ [DATE]
  • Minimum Hours. [#] Hours per Week
  • Pay. [AMOUNT] ☐ Project ☐ per Hour ☐ Commission ☐ [OTHER]
  • Other. [OTHER TERMS]

III. CONDITIONS.

  • Acceptance. Contractor must accept this offer by [DATE].
  • Background Report Required? ☐ Yes ☐ No

If the above-mentioned terms and conditions meet your qualifications for your services, it would be our pleasure to work with you. Please accept our offer by contacting me at any of the following methods:

Phone: [PHONE]
E-Mail: [E-MAIL]

We happily look forward to the opportunity of working with you.

Sincerely,

____________________________, [PRINT NAME]

CONTRACTOR’S ACCEPTANCE

I, [CONTRACTOR’S NAME], hereby agree to the terms of the above offer of employment. I understand that this offer is non-binding with a separate agreement to be written afterward.

Contractor’s Signature: ____________________________ Date: [DATE]

Print Name: [CONTRACTOR’S NAME]

How to Write

Download: Adobe PDF, MS Word, OpenDocument

Employer Contact Address

(1) Return Address. The mailing address where the Recipient of this offer may contact the Hiring Contractor or Hiring Company issuing this offer should be presented at the top of the page.

(2) Date Of Contracted Work Offer. The calendar date that marks the official date the Hiring Contractor is offering the concerned position to the Letter Recipient must be documented.

(3) Commissioned Contractor. The Recipient of this letter will need to be identified as the Contractor being commissioned for work by the Hiring Company or Hiring Contractor. Identify the Recipient whose skills are being commissioned to the opening of this document. This will attach the Recipient as the Commissioned Contractor who is being offered a position or project.

(4) Hiring Company. The Hiring Company or Contractor who is issuing this job offer to the Recipient must be named in the language of the first paragraph.

I. Position

(5) Title. Furnish the title of the position the Hiring Company is offering to the Commissioned Contractor.

(6) Duties. The position being offered may focus on one task or many. Describe the offered position by recording every work task the Commissioned Contractor must complete for the Hiring Company after accepting this job or project offer.

II. Terms

(7) Supervisor. The name of the Party who will be considered the Manager or immediate Supervisor of the Commissioned Contractor should be furnished to Section II.

(8) Start Date. The first calendar date of work for the Commissioned Contractor must be presented in Statement (B) (found in Section II).

(9) Indefinite Term. The length of time that the Hiring Company will require the commissioned services of the Contractor requires definition. One of two choices should be selected from Statement (C) to satisfy this requirement. If applicable, indicate that the position being offered is “Indefinite” by selecting the first checkbox in Statement C if there is no date of termination. Otherwise, leave this checkbox unmarked and tend to the second option.

(10) Defined Term. If the contracted work will end on a specific date, then mark the second checkbox and document the final calendar date of work.

(11) Payment. Document the amount of money that will be paid for the contracted work every time the Commissioned Contractor is paid. This statement will require that a definition of how often the Hiring Company will pay the Commissioned Contractor is provided. By selecting one of the checkboxes in Statement (D), the rate of pay can be defined as once for every “Project,” once per “Hour,” or as a “Commission.” If none of these accurately define when the dollar amount reported will be applied as payment, select the “Other” checkbox then use the space available for this option to define how often the payment amount will be applied to the Contractor’s earnings.

(12) Other. There may be additional details to the offer of work that should be included but have been left unaddressed. If so, use the area provided in Statement (E) to document any remaining conditions, offers, incentives, and other details that apply to the contracted work being offered.

III. Conditions

(13) Acceptance Date. The Hiring Company can impose a deadline on the Commissioned Contractor’s reply to this offer. This is often considered wise especially if there are project deadlines associated with the position being offered. To apply a deadline to the Commissioned Contractor’s response, furnish the last calendar date that the Hiring Company will accept a reply from the Commissioned Contractor to the “Acceptance” statement found in Section III.

(14) Background Report Requirement. If a background report must be conducted on the Commissioned Contractor in order for this job offer to proceed, then select the “Yes” checkbox following the question “Background Report Required?” otherwise, mark the second checkbox displayed to indicate that a background report will not be required to obtain the contractor position.

Hiring Company Information

(15) Hiring Company Contact Information. The Hiring Company’s “Phone” and “E-Mail” information should be presented at the close of this offer. Both of these contact methods should be well-monitored by the Hiring Company and be considered a reliable means for the Commissioned Contractor to submit further questions or a reply regarding this job offer.

(16) Hiring Company Signature. The Hiring Contractor or the Company issuing the job offer must sign this document to complete it.

Contractor’s Acceptance

(17) Commissioned Contractor Name. The Commissioned Contractor can reply using the statement provided. This statement requires that the full name of the Commissioned Contractor is supplied to its content.

(18) Commissioned Contractor Signature. Upon agreement to the acceptance statement and the decision to accept the offered position, the Commissioned Contractor must sign his or her name to the area provided.

(19) Printed Name Of Commissioned Contractor.

(20) Date Of Signature. Immediately after executing his or her signature, the Commissioned Contractor must document the current date.