Business Contracts
Independent Contractor Agreement
North Carolina
How are taxes covered in a contractor agreement?
I am an independent contractor that recently signed an agreement with a client. I am looking to understand how taxes are covered in the agreement, as I am unsure if the client is responsible for paying my taxes or if I am responsible for taking care of them myself. I want to make sure I am in compliance with all tax regulations and that my agreement accurately reflects this.
1 Attorney answer
Answer
Business Contracts
North Carolina
N'kia N.
ContractsCounsel verified
May 9, 2023
Independent contractors are separate ("independent") from the recipients of their services ("clients"). Clients do not make payroll deductions and withholdings from their independent contractors' pay like they would for their employees' pay. Rather, independent contractors are responsible for handling their own taxes. Ideally, independent contractors should have ongoing tax support to help ensure compliance with the tax regulations, as well as legal support of a knowledgeable attorney to review or help negotiate contract offers.