Illinois accounting independent contractor agreement template

Illinois Accounting Independent Contractor Agreement

This Illinois Accounting Independent Contractor Agreement (the "Agreement") is made and entered into as of [Date] by and between:

[Client Full Legal Name], a [Client Entity Type, e.g., Corporation] with its principal place of business at [Client Business Address], City of [Client City], County of [Client County], State of Illinois, Illinois Business Registration/Licensing Number (if applicable) [Client Registration Number], hereinafter referred to as "Client,"

and

[Contractor Full Legal Name], residing at [Contractor Business Address], City of [Contractor City], County of [Contractor County], State of Illinois, Illinois Business Registration/Licensing Number (if applicable) [Contractor Registration Number], hereinafter referred to as "Contractor."

1. Scope of Services

The Contractor agrees to provide the following accounting services (the "Services") to the Client:

Option A: Bookkeeping services, including but not limited to:

• Recording financial transactions.
• Reconciling bank accounts.
• Maintaining general ledger.

Option B: Financial statement preparation, including:

• Preparation of balance sheets, income statements, and cash flow statements in accordance with Illinois accountancy standards.

Option C: Payroll processing, including:

• Calculating and processing payroll for employees.
• Preparing and filing payroll tax returns with the Illinois Department of Revenue.

Option D: Tax filings, including:

• Preparation and filing of state and local tax returns, including sales/use tax oversight, and compliance with Illinois-specific industry regulations.

Option E: Audit Preparation and Internal Controls Review

• Assistance in preparing for audits and reviewing internal controls.

2. Deliverables

The Contractor shall provide the following deliverables to the Client:

Option A: Monthly financial statements due by the [Day of Month] of the following month.

• Quality standards: Accurate and complete financial data, adhering to GAAP (Generally Accepted Accounting Principles) standards.
• Documentation: All supporting documentation will be maintained and made available upon request.

Option B: Quarterly tax filings due in accordance with Illinois Department of Revenue deadlines.

• Quality standards: Accurate and timely filings, in compliance with Illinois tax laws.
• Documentation: Copies of all filed returns and supporting documentation will be provided.

Option C: Payroll reports, including employee pay stubs and tax summaries, delivered bi-weekly.

• Quality standards: Accurate calculation and reporting of payroll information.
• Documentation: Payroll registers and summaries will be provided.

3. Service Delivery Method and Location

The Services shall be delivered as follows:

Option A: On-site at the Client's principal place of business located at [Client Business Address].

Option B: Remotely, with access to the Client's accounting systems through a secure connection.

• Illinois-specific requirements: All financial and confidential data will be stored, accessed, and transmitted in compliance with the Illinois Personal Information Protection Act (PIPA) and IRS guidelines.

Option C: Hybrid, with a combination of on-site and remote work, as agreed upon by both parties.

4. Hours of Service and Client Cooperation

The Contractor shall provide services [Number] hours per week, Monday through Friday, between the hours of [Start Time] and [End Time].

Anticipated response time for client requests: [Number] business hours.

Client cooperation requirements: The Client shall provide timely access to all necessary documents, data, and systems as required to perform the Services, considering Illinois-specific business forms and deadlines.

5. Compensation

The Client shall compensate the Contractor as follows:

Option A: Hourly rate of [Dollar Amount] per hour.

Option B: Flat fee of [Dollar Amount] per month.

Option C: Per deliverable, as follows:

• Financial statements: [Dollar Amount]
• Tax filings: [Dollar Amount]

Option D: Retainer fee of [Dollar Amount] per month.

6. Invoicing and Payment

The Contractor shall submit invoices to the Client on a [Frequency, e.g., monthly] basis.

Payment is due within [Number] days of the invoice date.

Accepted payment methods: [List Accepted Payment Methods, e.g., Check, ACH Transfer].

Illinois sales tax: [Applicable or Not Applicable]

• If applicable, Illinois sales tax will be added to the invoice.

Late payment interest: Interest at a rate of [Percentage]% per month will be charged on overdue invoices, in conformance with Illinois usury and contract law.

7. Ownership of Work Product

All working papers, work products, and client data created by the Contractor in the performance of the Services shall be the sole and exclusive property of the Client, with reference to Illinois Board of Examiners rules on record retention and client access. Any accountant work file retention rights by the contractor are stated per AICPA/Illinois standards.

8. Confidentiality

The Contractor agrees to hold all Client information in strict confidence and not to disclose any such information to any third party, except as required by law or with the Client's prior written consent, referencing Illinois trade secret law, PIPA, the Accountant-Client Privilege where applicable, and requirements for safeguarding client financial and personal information.

9. Independent Contractor Status

The Contractor is an independent contractor and not an employee of the Client. The Contractor controls how and when services are performed consistent with Illinois Department of Employment Security and IRS 20-factor tests and is responsible for their own Illinois and federal tax filings, insurance (including Workers’ Compensation Waivers per Illinois law), and all statutory accounting and business licensing. Contractor confirms they possess any required state accounting credentials or CPA licensing.

10. Liability and Insurance

The Contractor shall be responsible for errors, omissions, professional negligence, and data breaches/unauthorized disclosures under Illinois law and agrees to indemnify the Client against Illinois tax authority penalties caused by contractor mistakes. The Contractor shall maintain professional liability insurance with minimum coverage limits of [Dollar Amount], suitable for accounting professionals in Illinois.

11. Subcontracting

The Contractor shall not subcontract or delegate any of the Services without the prior written consent of the Client, but may use Illinois-licensed assistants or bookkeepers with advance written approval, applying vicarious liability and confidentiality requirements.

12. Term and Termination

This Agreement shall commence on [Start Date] and shall continue until [End Date].

Option A: This Agreement shall automatically renew for successive [Number] month terms unless either party provides written notice of termination at least [Number] days prior to the end of the then-current term.

Option B: Either party may terminate this Agreement upon [Number] days' written notice to the other party, per Illinois best practice.

Immediate termination for breach or regulatory violations is permitted.

Upon termination, the Contractor shall provide a final accounting and full handover of files, records, and digital assets in industry-standard format and in compliance with Illinois state and federal recordkeeping rules within [Number] days.

13. Dispute Resolution

Any dispute arising out of or relating to this Agreement shall be resolved through:

• Initial negotiation between the parties.
• Optional mediation or arbitration in [City], Illinois.
• Exclusive jurisdiction of the courts of the State of Illinois.
• Choice of law: This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois.
• Address potential venues, costs, and prevailing party fee reimbursement standards following Illinois practice.

14. Compliance with Laws

This Agreement shall comply with all applicable Illinois and federal statutes, including the Illinois Public Accounting Act, state tax authority rules, state/federal anti-money laundering and anti-fraud laws, and professional conduct codes set by the Illinois Department of Financial and Professional Regulation and AICPA. Contractor confirms compliance with mandatory continuing education for CPAs as required by Illinois law, and cooperation with any regulatory audits or investigations.

15. Client Cooperation

The Client shall provide timely provision of documents, data, access to systems, and information as required by the Contractor, considering Illinois-specific business forms and deadlines.

16. Force Majeure

Neither party shall be liable for any delay or failure to perform its obligations under this Agreement due to causes beyond its reasonable control, including but not limited to acts of God, war, terrorism, civil unrest, labor disputes, and government regulations, including Illinois-specific emergency declarations.

17. Non-Solicitation, Non-Compete, and Non-Disparagement

The Contractor shall not solicit any of the Client's employees or customers during the term of this Agreement and for a period of [Number] years thereafter.

Non-Compete: During the term of this agreement and for a period of [Number] years following termination, the contractor will not engage in, or become employed by any competing business within [Number] miles of [Client Location]. This clause is limited and enforceable under Illinois law.

Neither party shall disparage the other party at any time.

18. Assignment, Amendment, and Waiver

This Agreement may not be assigned by either party without the prior written consent of the other party. This Agreement may be amended only by a written instrument signed by both parties. No waiver of any provision of this Agreement shall be effective unless in writing and signed by the waiving party.

19. Notices

All notices required or permitted under this Agreement shall be in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States mail, registered or certified, postage prepaid, addressed as follows:

• If to Client: [Client Full Legal Name], [Client Business Address]
• If to Contractor: [Contractor Full Legal Name], [Contractor Business Address]

20. Entire Agreement

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

The parties acknowledge that they have read, understood, and agree to be bound by the terms and conditions of this Illinois Accounting Independent Contractor Agreement.

[Client Full Legal Name]

By: [Client Name]

Title: [Client Title]

Date: [Date]

[Contractor Full Legal Name]

By: [Contractor Name]

Title: [Contractor Title]

Date: [Date]

Optional: Electronic signature validity in compliance with the Illinois Uniform Electronic Transactions Act.