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 Mississippi, an independent contractor agreement is a legal document that outlines the relationship between a client and a contractor who is hired to perform services. This type of agreement is important because it distinguishes the contractor from an employee, which has significant tax implications. Under federal law, specifically the Internal Revenue Code (26 U.S.C. §3509), an independent contractor is responsible for their own tax withholdings and payment of FICA taxes, as opposed to an employee whose taxes are withheld by the employer. In Mississippi, as in other states, it is advisable for an independent contractor agreement to be in writing to clearly establish the terms of the relationship. The written agreement typically includes the scope of work, duration of the project or service, payment details, and clauses related to confidentiality, non-solicitation, and how disputes will be resolved. While Mississippi state law will govern the interpretation and enforcement of such agreements, it is important to ensure that the agreement complies with both state and federal laws, including tax laws and regulations regarding the classification of workers.