Which Of The Following Is An Accurate Statement Regarding Independent Contractor Agreements

If the Contractor`s payment is submitted in exchange for each service provided by the Contractor, check the second box and note the dollar amount to be paid for each service in the empty line that contains this selection. Another common payment method is a predetermined commission. If the independent contractor is paid on commission, check the third box. A pair of blank lines attached to this option will require your report on what the commission is. Be sure to record the specific percentage that defines the commission and what that percentage applies to. The final selection in this section gives you the freedom to define how the independent contractor`s compensation is calculated. If none of the previous three statements are an accurate description of this process, you must select the last option (“Other”) and then directly specify the wage rate for the blank lines provided.

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