An independent contractor agreement—also known as a 1099 agreement or freelance contract—is a contract between a client willing to pay for the performance of services by a contractor (person, sole-proprietor, or single-member LLC) who is willing to perform the services. Under the Internal Revenue Code (26 U.S.C. §3509), an independent contractor is not an employee, and the client hiring an independent contractor is not responsible for tax withholdings and payment of FICA taxes. An independent contractor agreement should be in writing, and will usually address issues such as the (1) scope of the work (description of the services); (2) terms and length of the project or service; (3) payment details, including fee deposits and billing procedure; and (4) confidentiality, non-solicitation, and dispute resolution clauses.

In Idaho, as in other states, an independent contractor agreement is a legal document that outlines the terms of a working relationship between a client and a contractor who is not considered an employee. Under federal law, specifically the Internal Revenue Code (26 U.S.C. §3509), independent contractors are distinguished from employees, and clients are not required to withhold taxes or pay FICA taxes for them. In Idaho, it is important for such agreements to be in writing to clearly establish the nature of the relationship and to detail the scope of work, duration of the project, payment arrangements, and other terms such as confidentiality and non-solicitation. These written agreements help prevent misunderstandings and provide a framework for resolving disputes. While Idaho state statutes do not specifically mandate the format of these agreements, they must comply with general contract principles and relevant federal guidelines to ensure that the independent contractor status is recognized for tax and legal purposes.