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 Wisconsin, an independent contractor agreement is a legal document that outlines the terms of a business arrangement between a client and a contractor who will perform services. This type of agreement is important for clarifying that the contractor is not an employee and therefore the client is not responsible for withholding taxes or paying FICA taxes on behalf of the contractor. The agreement should be in writing to ensure that both parties understand their obligations and the specifics of the work to be performed. Key elements typically included in such an agreement are the scope of work, the duration of the project or service, payment terms, and clauses related to confidentiality, non-solicitation, and how disputes will be resolved. It's important to note that the classification of a worker as an independent contractor rather than an employee is subject to scrutiny under various laws, and misclassification can lead to legal consequences. Therefore, it is advisable for parties in Wisconsin to carefully consider the nature of their working relationship and to consult with an attorney to ensure that their agreement complies with applicable laws and IRS guidelines.