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 West Virginia, as in other states, an independent contractor agreement is a legal document that outlines the terms of a working arrangement between a client and a contractor who is not considered an employee. This distinction is important for tax purposes, as outlined in the Internal Revenue Code (26 U.S.C. §3509), which specifies that clients are not responsible for withholding taxes or paying FICA taxes for independent contractors. In West Virginia, it is advisable for such agreements to be in writing to clearly define the scope of work, duration of the project, payment terms, and other key provisions such as confidentiality and non-solicitation clauses. The written agreement helps prevent misunderstandings and provides a legal framework for resolving disputes. While state statutes do not typically dictate the exact form such agreements must take, they should comply with general contract principles and relevant federal guidelines to ensure the contractor is properly classified and not misidentified as an employee.