A Montana independent contractor agreement is used to establish an arrangement whereby a client temporarily hires a contractor to perform work. It functions to clarify the responsibilities of both parties and provide legal protection in the event either person fails to uphold their obligations. The document describes the contractor’s duties, insurance coverage, payment terms, and the timetable for project completion.
Another critical role of the agreement is to differentiate the contractor from an employee and prevent misclassification. If the client appears to be the contractor’s employer, they may be liable to the IRS for payroll taxes (e.g., workers’ compensation, Social Security).