How do I give a bonus/commission/incentive to a 1099 contractor?
March 23, 2010 11:51 AM Subscribe
How do I give an incentive requiring an independent contractor to meet certain goals without creating an employer/employee relationship?
posted by farmersckn to Law & Government (5 answers total) 1 user marked this as a favorite
I use independent contractors (ICs) for programming tasks. I want the tasks done a certain way (i.e. they report their time using a web application of my choosing, they finish the task in a timely manner [decided by me], they give good feedback, they comment their code, etc...).
In order to encourage my ICs to meet these objectives, I would like to offer a 5% incentive when they meet them. I am concerned that laying out these 'requirements' will create an employer/employee relationship, since I am dictating how the work is to be done.
I really just want to have my ICs meet these goals, but I don't want to be a tyrant - that's why I want to incentivise this program, to make them want to meet these goals.
Is there any way I can do this without causing myself a big legal headache later on if one of these ICs wants to claim in court that I am their employer? Are these objectives better off written into the contract with my ICs?
What should I be careful of?