1.
The Compliant Gig Toolkit
Demystifying Independent Contractor
Engage/ment
Disclaimer: The content in this Toolkit is designed
to provide educational information and should not
be considered legal advice
www.kdragonfly.com

2.
AUTHOR PAGE:
Kathy Dotson is a talent
acquisition professional with
over 20 years of recruiting
and contingent workforce
management with expertise in
a variety of settings. She
holds a Bachelor’s Degree in
Business from the University
of Iowa.
Kim Homolka is a technology
services, human capital, talent
management and contracting
veteran with over 20 years
experience in the Commercial
and Federal Government
Sectors. She holds a degree in
Social Science from Colorado
State University.
www.kdragonfly.com

3.
TABLE OF CONTENTS:
Chapter 1: Why Hire a Guru?
Chapter 2: Compliance – Demystified
Chapter 3: Finding and Vetting Independent
Contractors
Chapter 4: On boarding
Chapter 5: Successful Oversight
Chapter 6: Paperwork and Taxes
Appendix: Forms and Resources
Disclaimer: The content in this Toolkit is designed to
provide educational information and should not be
considered legal advice
www.kdragonfly.com

4.
CHAPTER 1:
Why hire a Guru?
The way we work is changing. Fluctuations in business
activity are increasing businesses’ demand for project-based
work and at the same time, professionals are seeking
more control of when, where and how they work.
Independent Workers (otherwise known as Gurus,
Independent Contractors, freelancers, consultants, etc.)
provide the perfect on-demand talent solution and are
considered a variable asset to your organization helping to
control costs.
It’s The New Way to Work!
This toolkit is a guide to not only engage Independents but
also to assist your organization in compliance with state and
federal regulations.

5.
The Compliance Toolkit
“What matters is that the
employer has the legal
right to control the
details of how the
services are performed.”
Source: www.irs.com
Let’s start at the beginning and look at the definitions of an Employee vs. Independent
Contractor:
Employee (Common-Law Employee)
Under common-law rules, anyone who performs services for you is your employee if you
can control what will be done and how it will be done. This holds true even when you
give the employee freedom of action. What matters is that you have the right to
control the details of how the services are performed.
Independent Contractor
The general rule is that an individual is an independent contractor if the payer has the right
to control or direct only the result of the work and not what will be done and how it
will be done. If the services performed can be controlled by an employer (what will be
done and how it will be done), the individual is more than likely an employee. This
applies even if the individual is given freedom of action. What matters is that the
employer has the legal right to control the details of how the services are performed.
In addition to the definitions above, Independent Contractors are typically engaged in
project-based work that usually has a project start and end date. You may also wish to
engage a Contractor to fill a specialized skill gap not currently found within your
organization.
For more information on Employee vs. Independent Contractor - visit the IRS website here.
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6.
The Compliance Toolkit
The 2014 Fiscal Budget includes
approximately $14 million to combat
misclassification.
Deciding whether to hire an Employee
or engage the services of an
Independent can be confusing and the
IRS rules not make it any easier.
The decision should be made carefully
as misclassification is costly. Costs
incurred as a result of misclassification
can include:
 Legal fees
 Unpaid wages, including
overtime
 Unemployment taxes
 Workers Compensation
premiums
 Payroll taxes
 Employee benefits
Let’s look at the advantages and
disadvantages to help in your decision
to hire an Independent:
Am I
compliant?!
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7.
The Compliance Toolkit
It typically costs 20%-30% more to
hire an employee.
ADVANTAGES of engaging an Independent Contractor
Reduced Costs– Working with Independents saves you the expenses of hiring.
These expenses include:
–Employer-provided benefits, space and equipment
–The employer’s share of Social Security and Medicare
–State Unemployment Insurance
–Worker’s Compensation insurance
In addition, employer training costs are reduced as Independents are able to hit
the ground running. It typically costs quite a bit more to hire an employee – 20%-
30% more!
Freedom and Flexibility – You have greater freedom to hire based upon tasks or
projects and avoid the expense and legal trouble that can accompany layoffs.
Reduced Exposure to Liability – Independents are just that, Independent business
people who are not protected under the same state and federal laws as
employees. Employees have rights such as:
 The right to at least minimum wage and if qualified, overtime compensation
 Protection from employment discrimination
 The right to form a union
 The right to take time off to care for a sick family member or newborn
Your risk or exposure to certain lawsuits is reduced such as wrongful termination
and job discrimination.
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8.
The Compliance Toolkit
DISADVANTAGES of engaging an Independent Contractor
Less Control – Independents control how to perform the task or project. That’s
why you are engaging with them. Interfering or supervising increases your
exposure to risk. Later on, we’ll talk about ways to reduce this risk.
Injury Liability - Independents are not covered by workers’ compensation, which
means that they can sue you for damages if they are injured on the job
because of your carelessness.
Copyright Ownership - If you hire an Independent to create a product that can be
copyrighted–such as an article, book, or photograph–you might not be
considered the owner of the work unless you use a written agreement
transferring copyright ownership from the Independent to you.
Government Audits - You face a risk of government audits. State and federal
agencies–particularly the IRS–want to see as many workers as possible
classified as employees, not Independents. The federal government allocates
time and money to ensure compliance. The more workers classified as
employees, the more tax and insurance money flows into government and the
harder it is for workers to underreport or hide their income.
Working with Independents can be done successfully. Knowing how to ensure
compliance should be considered before you engage with a Contractor. In
the next chapter, we demystify compliance.
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9.
CHAPTER 2:
Compliance - Demystified
Compliance is confusing. There are many factors that determine if the
relationship is Independent. A critical variable or factor is the
degree of control and evidence of independence. The IRS looks at
control in three ways:
1. Behavioral
2. Financial
3. Type of Relationship
Let’s take an in-depth look at these three degrees of control:
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10.
The Compliance Toolkit
1. Behavioral Control
Behavioral control refers to facts that show whether there is a right to direct or
control how the worker does the work. A worker is an employee when the
business has the right to direct and control the worker. The business does
not have to actually direct or control the way the work is done – as long as
the employer has the right to direct and control the work.
The behavioral control factors fall into the categories of:
– Type of instructions given
– Degree of instruction
– Evaluation systems
– Training
2. Financial Control
Financial control refers to facts that show whether or not the business has the
right to control the economic aspects of the worker’s job.
The financial control factors fall into the categories of:
– Significant investment
– Unreimbursed expenses
– Opportunity for profit or loss
– Services available to the market
– Method of payment
3. Type of Relationship
Type of relationship refers to facts that show how the worker and business
perceive their relationship to each other.
The factors, for the type of relationship between two parties, generally fall into
the categories of:
– Written contracts
– Employee benefits
– Permanency of the relationship
– Services provided as key activity of the business
For more information visit www.irs.gov
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11.
The Compliance Toolkit
To make the picture even clearer, follow
these 10 steps each time you engage
the services of an Independent:
I get it!
Disclaimer: The content in this Toolkit is designed
to provide educational information and should not
be considered legal advice
www.kdragonfly.com

12.
The Compliance Toolkit
10 Steps to Independent Contractor Compliance:
1. Give up control. The Independent controls when, where and how the work is
done.
2. Determine if the Independent has a business structure and if they are
marketing their business openly through a website or other advertising
methods. This is one key area that will be reviewed in an audit.
3. As part of your on-boarding process, it is recommended that you do not
provide the Independent with training, employee handbooks, policies,
employment application, equipment or materials - this indicates an employee
relationship.
4. Sign an Independent Contractor Agreement and Statement of work prior to
engaging the Contractor. Follow the terms of the agreement, including its
termination provisions. If you engage the Independent after the original
project is completed, sign a new Independent Contractor agreement.
5. The Independent should have their own business cards and marketing
material with their business name on them. You should not provide business
cards for them.
6. The Independent should pay their own travel or other business expenses.
7. It is normal to check in or meet with the Independent periodically to ensure
the project is progressing and major milestones are met. Don't require an
Independent to provide you formal written reports. Along with this, avoid
inviting or requiring an Independent to attend regular employee meetings or
outside functions.
8. The Independent ultimately determines when and how the work is
performed. The Independent chooses how the work is completed, including
sub contracting project tasks to other Independents whom they supervise.
9. Pay the Independent by milestone outlined in your SOW. Avoid paying an
hourly rate and pay the invoices as you would pay other vendors.
10. The Independent typically works on several projects at one time. Avoid giving
Independents so much work or such short deadlines that they have to work
full time for you.
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13.
The Compliance Toolkit
Don’t lose sleep. If you are worried
your organization may be out of
compliance or need additional
assistance with compliance, seek
professional guidance from a
Kdragonfly Gig Manager or seek
professional advice from your
accountant or attorney.
A compliance check will help you sleep
better at night.
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14.
CHAPTER 3:
Sourcing and Vetting
So, you’ve made the decision to engage an Independent Contractor but
where do you find the right talent and how do you control the
vetting process to ensure you remain compliant?
Next, we’ll discuss finding, screening and vetting Independent
Contractors.
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15.
The Compliance Toolkit
Finding the right talent
Searching for Talent– Utilizing a variety of sources to find talent is the best way to
ensure you will find who you are looking for. Most people rely on their
network, which is a great avenue, however, it may not ensure you are
receiving the best talent. Taking the time to widen your search and vet
Independents thoroughly could result in time and money saved in the long
run.
Here are a lists of resources you may want to engage:
1. Kdragonfly offers a free online marketplace to post your Gig and search for
Gurus. We obviously recommend starting here.
2. Online job boards -Post to other job posting sites or online sites specializing in
Contractors such as Odesk or Elance. Posting cost will vary and most
Contractor sites will charge a percentage of the project cost.
3. Network – Utilize your network to find talent. Post a discussion or update on
LinkedIn and Facebook. Many social media outlets offer paid job listings as
well.
4. Post the project on your own website or blog.
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16.
The Compliance Toolkit
Screening for talent- Ensuring the Independent has the talent needed to complete
the project is important. Creating a list of interview questions that are
consistently used during each candidate interview is helpful. If your project is
highly technical, relying upon a technical resource or utilizing technical
assessments such as ProveIT (www.proveit.com) will assist in your screening
process.
Above all, ask for references and recommendations from clients who have utilized
the Contractor’s services in the past. Call at least two references. This is time
consuming but well worth the time invested.
Vetting for Compliance – Once you’ve made the final selection based upon talent,
you will want to make sure you take the extra step to vet the final Contractor
candidate for compliance. Here is a short checklist to ensure your Contractor
is set up properly which ultimately reduces your compliance risk:
√ The Independent has a business name that is filed with the Secretary of
State. For example, Colorado’s website to check is: Colorado Secretary
of State
√ The Independent has a website and/or actively advertises their business
in the open market. Ask how he or she markets their business. Keep
copies of business cards and marketing materials.
√ Ask for a list of other clients the Independent has serviced in the past
year.
√ The Independent has liability insurance and worker’s compensation
insurance, if appropriate. Keep proofs of insurance on file.
Now that you have the talent ready to go – let’s onboard!
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17.
CHAPTER 4:
On boarding
The paperwork for independent contractors is much simpler than for
employees. In some cases the only form that may need to be completed
is a Form W-9, which includes the contractor's taxpayer identification
number, name, and address. You must have a W-9 on file for each
independent contractor so that you don't have to withhold income taxes
from that individual.
.
There may be an income tax withholding forms required by your state.
Check with your state's income tax authority for more information. Your
organization may also require evidence of insurance such as workers
compensation or liability insurance.
Most important of all is an Independent Contractor Agreement, including
a Scope of Work (SOW) signed by both parties. Let’s look at the
Independent Contractor Agreement’s key elements first.
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18.
Key Elements of an Independent
Contractor Agreement
Define the Relationship
• An important element of the independent contractor agreement defines the
relationship of the contractor to the business hiring him or her. The definition
establishes that the parties are not entering into an employer-employee
relationship.
Duties, Contract Terms and Acknowledgements
• Along with a description of the services the independent contractor agrees to
provide for the hiring party, an essential element to address in the agreement
is the time involved. The agreement might indicate incremental dates for the
completion of segments of a large project. It might also include a clause to
extend the agreement. If applicable, the agreement should include the
location where the indicator contractor will perform the work. Another key
element is the agreed upon finished product or deliverable that the
contractor will provide.
Payment and Reimbursement of Expenses
• The agreement should include the terms for paying the independent
contractor, such as an hourly or flat rate. It should indicate when the
contractor will receive payment such as when the work is completed or in
portions based upon milestones, deliverables or upon completion of the
project. The agreement should include details about who is responsible for
the cost of required materials and supplies.
Protections and Enforceability
• An independent contractor agreement generally includes key elements that
provide legal protections and guarantees, usually for the hiring company.
Provisions typically prohibit conflict of interest and assignment of rights
pertaining to the contractor without the consent of the payer. The agreement
generally requires the contractor to maintain confidentiality and comply with
provisions for arbitration and for amending or terminating the agreement. An
enforceability provision can state that if any part of the agreement is for any
reason unenforceable, the remaining parts of the agreement remain in “full
force and effect.”
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The Compliance Toolkit

19.
The Compliance Toolkit
The Scope of Work(SOW)
The scope of work (SOW) is a
formal document that captures
and defines the tasks, activities,
deliverables and timeline that
an independent contractor will
execute for a project. The scope
determines the boundaries of
the client project and can
provide the foundation for
measuring performance against
project goals. You will find a
sample scope of work in the
Appendix.
Your scope of work becomes part of the Independent Contractor Agreement, so it is
important to clearly define the entire scope without being too restrictive. The SOW
should address the following:
Work that will be performed
Roles and responsibilities
Timeline for work
Performance measurement
Next, we’ll discuss what should be included in a Scope of Work.
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20.
The Compliance Toolkit
Writing a Scope of Work (SOW)
1. Objective - Establish a scope statement that identifies the project objective
or purpose. The statement defines objectives of the project, and a high-level
overview of the solution. This ensures clarity as to why the work is
being performed.
2. Tasks - List the tasks to be performed to indicate any performance
requirements and all project requirements that the contractor must comply
with during contract performance. Every step of the project should be
defined in terms of work that has to be done. As much as possible, group
similar or related tasks and organize each task in logical order.
3. Deliverables - Identify project milestones or deliverables required for the
project to be successfully completed. Deliverables are the results that need
to be accomplished at the end of each phase or at the end of the project.
Determine how you will monitor the deliverables. Some methods used
include random sampling, periodic inspections, and reporting.
4. Schedule - Defines the “when”. The schedule provides a detailed schedule
of the milestones and deliverables. Minimally it should include all of the
client and client’s partner touch points. The data should include the task
and end date. Task start dates are optional.
5. Price - The pricing section needs to include the price including both time of
staff and outside expenses. It should also discuss the pricing assumptions
such as is this fixed fee or time and materials, how outside expenses are
handled, payment terms including a payment schedule, and if payments
are based on a milestone/deliverable or a schedule.
6. Inclusions - A project's scope has to highlight all the essential work that has
to be done. Everything that is mentioned as part of the project is termed as
an inclusion. It may be categorized into different categories and
subcategories. Identify any resources that are necessary to complete each
task that includes labor, equipment, or materials.
7. Exclusions - Anything that is not mentioned in the scope statement is
outside the scope of the project and should not be done. However, there
are certain clauses or conditions that may be mentioned in the project for
things that should not be done. These clauses are termed as exclusions.
Things that are specifically mentioned as 'not to be done' in a project are
termed exclusions. www.kdragonfly.com

21.
Chapter 5:
Successful Oversight
You are well on your way to successful engagement of an Independent .
The Independent Contractor Agreement and SOW are time consuming
but will provide a starting point for beginning and overseeing a successful
project. Clarity and communication is key for both you and the
Independent. Utilize the SOW to manage the Independent including
timeline, milestones and deliverables to communicate clearly and ensure
your project stays on task.
Here are a few more tips:
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22.
Successful Independent Oversight
 Provide predictability - Let the contractor know the expected timeline,
deadlines and other information about your project so he or she can decide
whether it’s a good fit or not.
 Put it in writing -Even with contractors you’ve worked with before, written
contracts are essential to define a project’s scope and keep things from
getting out of control. Contracts protect both sides, so be sure to carefully
think over all the elements that may need to go into your contract. If the
contractor creates a contract, read it carefully—or you may regret it.
 Communicate clearly - Unshared expectations are the downfall of many an
independent contractor relationship. Clearly define your terms at the
beginning of the project so you both understand what the other expects. This
way, you won’t end up paying for something that falls short of what you
wanted. Communicate actively and give feedback especially if the contractor's
work fails to meet expectations.
 Vary your method of communication - Establish ways to interact beyond
email. For independent contractors who work remotely and do not regularly
interact with others, it is nice to Skype or meet in person rather than always
communicating via impersonal email. Be available to answer questions along
the way.
 Avoid micromanaging – If you have done your homework including finding a
qualified Independent, then let him or her do it. Do not worry about the
hours worked and do not ask for too many updates. Remember the individual
is not an employee, but someone who works independently to provide a work
product.
 Pay - Pay invoices in a timely manner to foster a good relationship with the
independent contractor.
 Wrap it up - At the end of each project, it’s a good idea to go over what went
well and what didn’t, so you can learn from it and fine-tune your relationship
going forward. It’s easy to skip this step, but it really pays off if it enables you
to streamline your independent contractor process.
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The Compliance Toolkit

23.
CHAPTER 6:
Paperwork and Taxes
Paying an independent contractor is fairly simple, compared to paying
an employee. An independent contractor receives compensation in
one of several methods, depending on the agreement set up between
your company and the contractor:
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24.
The Compliance Toolkit
• Hourly. Some contractors get paid on an hourly basis; for example, a
computer programmer might get paid for hours worked on programming
tasks.
• By the Job. The other payment alternative is to pay by the work done or by
the job. For example, a blogger might get paid by the number of blog posts
created. A cleaning service might get paid a set amount for cleaning your
office.
In either case, the contract should spell out the payment amount and method.
• Withholding and Deductions from Contractor Pay
In most cases, no federal or state income tax is withheld from the pay of an
independent contractor. There are exceptions, in the case of a contractor who
does not have a taxpayer identification or has provided an incorrect taxpayer ID.
• Employment Taxes and Independent Contractor Pay
You do not need to withhold FICA taxes (Social Security and Medicare) from the
pay of an independent contractor. The contractor is independent and is
responsible for his or her own self-employment tax payment. No unemployment
taxes or workers compensation payments are required for independent
contractor workers.
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25.
1099 Processing
1. Prepare and send out a W-9 form (see Appendix) to each vendor at the
time a contract is initiated. W-9 forms should be retained for four years.
2. Set up appropriate vendors in your accounting system.
3. Accurately post all checks to 1099 vendors.
4. At year end, determine which vendors must receive a 1099. Send 1099-
MISC each year for any contractor (e.g., attorney, accountant,
consultant) paid $600 or more for services provided during the year.
5. Forms are available from office supply dealers, your software provider
or online at www.irs.gov.
6. Year-End Processing:
 Verify vendor data
 Prepare 1099 forms
 Submit one copy of 1099 to vendors by January 31 of the year
following payment
 Submit one copy of 1099 to IRS by February 28, unless filing
electronically through the use of the Filing Information Returns
Electronically (FIRE system) in which case the form must be filed by
March 31st.
7. Make sure to consult with your tax or accounting professional. He or
she will provide the most comprehensive 1099 processing advice.
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The Compliance Toolkit

26.
It’s no longer a mystery. The Compliance Toolkit has demystified Independent
Contractor Engagement and provided you the tools necessary to begin
engaging Independent Contractors to grow your business. In addition to
following the advice in the Toolkit, consult with your legal professional, your
tax adviser and/or your accountant.
Make sure to visit www.kdragonfly.com the next time you need help finding,
screening and vetting your next Independent Worker. When you’re short on
time, http://we’ll do www.the work kdragonfly.for you. We’ve com/incorporated http://www.a unique kdragonfly.vetting com/
process
into each Independent (Guru) profile saving you time and reducing your risk.
We are excited you are joining us on our mission to grow the Independent
Workforce, one business at a time.
Let’s get started toward this NewWay toWork!
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Summary

27.
Appendix:
Resources
Contractor Agreement
Sample Scope of Work
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W-9 Form
1099 Form

28.
Sample Independent
Contractor
Agreement:
.
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29.
INDEPENDENT CONTRACTOR AGREEMENT
This Agreement is entered into by and between
___________________________. ("Company") and ______________,
("CONTRACTOR"), as an Independent Contractor.
PURPOSE
COMPANY is in the business of providing _________________________
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services.
COMPANY desires to engage CONTRACTOR to provide such services as
an independent contractor of COMPANY.
CONTRACTOR desires to work with COMPANY as an independent
contractor.
The parties, for and in consideration of the mutual and reciprocal
covenants and agreements herein, do agree as follows:
AGREEMENT
1. Compensation. CONTRACTOR shall be paid for his services as follows:
________________
_______________________________________________________________
______________.
All such compensation set forth above shall be reported to CONTRACTOR
pursuant to a 1099 statement.
2. Term. This Agreement shall commence on _______ __, 201_, and
continue until either party wishes to terminate this agreement by that party
providing to the other party a 60 day advanced notice of its desire to terminate this
agreement.
3. Services. CONTRACTOR shall provide the necessary services as
directed by COMPANY and as set forth as follows:
_____________________________________________
_______________________________________________________________
________________.
4. Hold Harmless/Indemnification. CONTRACTOR agrees to
indemnify, defend, and hold COMPANY harmless from and against any claim,
demand, action, penalty, suit, or liability, including, but not limited to, attorney's fees
and costs, which COMPANY may incur, pay or otherwise become responsible for
arising from any negligent actions of CONTRACTOR in providing these services
pursuant to this Agreement.

30.
5. Protection of Confidential Information and Trade Secrets.
(a) Definition. “Confidential Information” means all nonpublic information
concerning or arising from COMPANY’S business, including particularly but not by way
of limitation trade secrets used, developed or acquired by COMPANY in connection
with its business; information concerning the manner and details of COMPANY’S
operation, organization and management; financial information and/or documents
and nonpublic policies, procedures and other printed or written material generated or
used in connection with COMPANY’S business; its business plans and strategies; the
identities of the its clients and the specific individual client representatives with
whom it works; the details of the its relationship with such clients and client
representatives; the nature of fees and charges made to the its clients; nonpublic
forms, contracts and other documents used in the its business; the nature and
content of computer software used in its business, whether proprietary to it or used
by it under license from a third party; and all other information concerning its
concepts, prospects, clients, employees, contractors, earnings, products, services,
equipment, systems, and/or prospective and executed contracts and other business
arrangements. Confidential Information shall not include information (a) disclosed
publicly in published materials, (b) generally known to the public, (c) that is now or
subsequently becomes generally known to the public through no fault of
CONTRACTOR, (d) independently developed by CONTRACTOR without the use of any
Confidential Information provided by it and outside the scope of his duties as a
subcontractor to COMPANY; (e) that is lawfully obtained from any third party
unrestricted by any confidentiality requirements as to such information; or (f) that is
released or approved for release by COMPANY.
(b) CONTRACTOR’S Use of Confidential Information. Except in connection with
and in furtherance of his work on COMPANY’S behalf, he shall not, without
COMPANY’S prior written consent, at any time, directly or indirectly, use, disclose of
otherwise communicate any Confidential Information to any person or entity. This
nondisclosure covenant shall remain enforceable in perpetuity (so long, as such
information remains Confidential Information), irrespective of the timing or
circumstances of the termination of CONTRACTOR’S services.
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31.
(c) Acknowledgments. CONTRACTOR acknowledges that during the term of this
agreement, CONTRACTOR will have access to Confidential Information which shall be made
accessible to him/her only in strict confidence; that unauthorized disclosure of Confidential
Information will damage the business; that Confidential Information would be susceptible to
immediate competitive application by competitor of COMPANY, that its business is
substantially dependent on access to and the continuing secrecy of Confidential
information; that Confidential Information is unique to it and known only to CONTRACTOR
and COMPANY, that COMPANY shall at all times retain ownership and control of all
Confidential Information; and that the restrictions contained in this paragraph are
reasonable and necessary for the protection of its business.
(d) Records Containing Confidential Information. All documents or other records
contingent or reflecting Confidential Information (“Confidential Documents”) prepared by or
provided to CONTRACTOR are and shall remain COMPANY’S property. Except with its prior
written consent, He shall not copy or use any Confidential Document for any purpose not
relating directly to his/work on COMPANY’S behalf, or use, disclose or sell any Confidential
Document to any party other than COMPANY. Upon the termination of this agreement or
upon COMPANY’S request, CONTRACTOR shall immediately deliver to COMPANY or its
designee (and shall not keep in his possession or deliver to anyone else) all Confidential
Documents and all other property belonging to COMPANY. This paragraph shall not bar him
from complying with any subpoena or court order, provided that he shall at the earliest
practicable date provide a copy of the subpoena or court order to COMPANY.
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6. Noncompetition.
During the term in which CONTRACTOR is engaged in work with COMPANY, and
for a period of twelve (12) months following final payment or after termination of services.
(“The Noncompetition Period”), CONTRACTOR shall not, engage in employment or
independent contractor work similar to that performed by COMPANY with COMPANY’S
clients or customers, except with written authorization from COMPANY. CONTRACTOR shall
not directly or indirectly, as an officer, director, employee, consultant, owner, shareholder,
adviser, joint venture or otherwise, compete with any and all of COMPANY’S clients or
customers.
7. Survival.
CONTRACTOR’S obligations under Sections 5 and 6 shall survive the termination of his
services and shall thereafter be enforceable whether or not such termination is later
claimed or found to be wrongful or to constitute or result in a breach of any contract or of
any other duty owed or claimed to be owed by COMPANY to CONTRACTOR.

32.
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8. Remedies.
CONTRACTOR acknowledges that upon a breach of any obligation under this
agreement, COMPANY will suffer immediate and irreparable harm and damage for which
money alone cannot fully compensate it. CONTRACTOR therefore agrees that upon such
breach or threatened breach of any obligation under this agreement, COMPANY shall be
entitled to a temporary restraining order, preliminary injunction, permanent injunction or
other injunctive relief, without posting any bond or other security barring him from violating
any such provision. This paragraph shall not be construed as an election of any remedy, or
as a waiver of any right available to COMPANY under this agreement or the law, including
the right to seek damages from him for a breach of any provision of this agreement, nor
shall this paragraph be construed to limit the rights or remedies available under Colorado
law for any violation of any provision of this agreement. The prevailing party in any
litigation shall receive its reasonable attorney fees and costs incurred in such action.
9. Independent Contractor.
CONTRACTOR is an independent contractor for COMPANY, and is not an agent,
employee or representative of COMPANY, as agreed to and desired by both parties.
CONTRACTOR agrees that he is obligated to report as income all compensation received by
him pursuant to this Agreement, and he is responsible to pay all withholding taxes.
CONTRACTOR agrees to complete the attached Contractor's Compensation and Tax
Certificate by April 15, 201_, for the tax year 201_, and each year thereafter if that year is
within the terms of this Agreement..
10. Governing Law. This Agreement shall be governed and construed
according to the laws of the state of Colorado.
11. Complete Agreement. This Agreement may not be changed except by a
written instrument signed by the parties. This Agreement constitutes the complete
agreement of the parties.
12. Severability. If any provision of the Agreement is declared by any court of
competent jurisdiction to be invalid for any reason, such invalidity shall not affect the
remaining provisions.
The parties have executed this Agreement in duplicate on _______________________.
COMPANY:
________________________________________.
By:_________________________________________
__________________, its __________________
INDEPENDENT CONTRACTOR:
_____________________________

33.
Sample Scope of
Work:
.
www.kdragonfly.com

34.
www.kdragonfly.com
Scope of Work:
Business Name:
Independent Contractor:
Deadline:
Scope Statement:
Deliverables:
Exclusions:
Milestones
(Project Name)
Milestone Completion Date

35.
Stakeholder Responsibility
Type Description Cost
Labor – Internal
Labor – External
Materials
Hardware
Software
Total
www.kdragonfly.com
Stakeholders
Project Cost Estimates
Client Signature: Date:
IC Signature: Date:

36.
W-9 Form
.
Sample Form W-9 http://www.irs.gov/pub/irs-pdf/fw9.pdf
www.kdragonfly.com

37.
www.kdragonfly.com

38.
1099 Form
.
Attention:
This form is provided for informational purposes only. Copy A appears in red, similar to the
official IRS form. Do not file copy A downloaded from this website. The official printed
version of this IRS form is scannable, but the online version of it, printed from this website,
is not. A penalty may be imposed for filing forms that can’t be scanned. See part O in the
current General Instructions for Certain Information Returns for more information about
penalties.
To order official IRS forms, call 1-800-TAX-FORM (1-800-829-3676) or Order Information
Returns and Employer Returns Online, and we’ll mail you the scannable forms and other
products.
See IRS Publications 1141, 1167, 1179 and other IRS resources for information about
printing these tax forms.
www.kdragonfly.com

39.
www.kdragonfly.com

40.
www.kdragonfly.com
Additional Resources:
www.irs.gov
For more information, refer to Publication 15-A (PDF), Employer's Supplemental
Tax Guide, or Publication 1779 (PDF), Independent Contractor or Employee. If you
want the IRS to determine whether a specific individual is an independent
contractor or an employee, file Form SS-8 (PDF), Determination of Worker Status
for Purposes of Federal Employment Taxes and Income Tax Withholding.
http://www.irs.gov/pub/irs-pdf/p334.pdf
CONTACT INFORMATION:
WWW.KDRAGONFLY.COM
E-MAIL: INFO@KDRAGONFLY.COM
P: 970-325-5080
KDRAGONFLY TWITTER ACCOUNT
KDRAGONFLY FACEBOOK ACCOUNT
KDRAGONFLY LINKEDIN ACCOUNT