Kentucky accounting independent contractor agreement template

Kentucky Accounting Independent Contractor Agreement

This Kentucky Accounting Independent Contractor Agreement (the "Agreement") is made and effective as of this [Effective Date] by and between:

• [Client Full Legal Name], residing at [Client Address], hereinafter referred to as "Client,"
• [Accounting Contractor Full Legal Name], residing at [Accounting Contractor Address], and/or operating under the business name [Accounting Contractor Business Name] with its principal place of business at [Accounting Contractor Business Address], hereinafter referred to as "Contractor."

1. Contractor Identification and Licensing

• Option A: Contractor is a sole proprietor and holds the following Kentucky professional license: [License Type], License Number: [License Number].
• Option B: Contractor operates as a [Business Structure, e.g., LLC] registered in Kentucky, and the Kentucky business registration number is: [Registration Number].
• Option C: Contractor is a Certified Public Accountant (CPA) licensed by the Kentucky Board of Accountancy, license number: [CPA License Number].

2. Scope of Services

• Option A: The Contractor shall provide the following accounting services to the Client:
  • Bookkeeping services, including [Specify Bookkeeping tasks].
  • Preparation of monthly/quarterly/annual financial statements.
  • Payroll services, including processing payroll and filing related Kentucky payroll tax returns.
  • Preparation and filing of Kentucky state income tax returns and other applicable state tax filings.
• Option B: The Contractor shall perform the following specific project(s) for the Client:
  • [Project 1 Description]: Deliverable: [Deliverable], Deadline: [Date].
  • [Project 2 Description]: Deliverable: [Deliverable], Deadline: [Date].
• Option C: Internal controls reviews and compliance audits as reasonably requested by Client.

3. Service Location and Access to Records

• Option A: Services shall be performed at the Contractor's Kentucky office located at [Contractor Office Address].
• Option B: Services shall be performed at the Client's premises located at [Client Premises Address].
• Option C: Services shall be performed remotely, with secure access to Client's electronic records. All access shall comply with Kentucky laws on business record retention and privacy.

4. Compensation and Payment

• Option A: The Client shall compensate the Contractor at an hourly rate of [Hourly Rate] per hour for services rendered.
• Option B: The Client shall pay the Contractor a fixed fee of [Fixed Fee] for the completion of the services outlined in Section 2.
• Option C: The Client shall pay the Contractor a monthly retainer fee of [Retainer Fee].
  • Invoices shall be submitted by the Contractor on a [Billing Frequency, e.g., monthly] basis.
  • Payment is due within [Number] days of the invoice date.
  • Late payment penalties will accrue at a rate of [Percentage]% per month, or the maximum rate permitted by Kentucky law.

5. Taxes

• The Contractor is solely responsible for all federal, state, and local taxes, including Kentucky state income tax, local occupational license taxes, and self-employment taxes.
• Client will issue an IRS Form 1099-NEC to Contractor as required by law.

6. Independent Contractor Status

• Contractor is an independent contractor and not an employee of Client. Nothing in this Agreement shall be construed to create an employer-employee relationship. Contractor is solely responsible for their own tax, benefit, and workers’ compensation obligations.
• Contractor acknowledges they are performing services for other entities and are not under the direct control of Client except as to the specific services requested.

7. Professional Qualifications and Insurance

• Contractor warrants that they possess the necessary qualifications and expertise to perform the services outlined in this Agreement and are compliant with Kentucky Board of Accountancy rules, as applicable.
• Contractor maintains professional liability/errors and omissions insurance with a minimum coverage of [Dollar Amount]. Contractor shall provide proof of insurance upon request.

8. Confidentiality and Data Security

• Contractor shall maintain strict confidentiality of all Client information and data, in compliance with Kentucky laws addressing protection of client financial records and relevant federal and state privacy acts.
• Contractor shall implement appropriate data security measures to protect Client data. Upon termination, all data shall be returned or destroyed according to Client instructions and Kentucky law.

9. Ownership of Work Product

• All work product, records, and deliverables, including working papers and financial statements, shall be the property of the Client, unless otherwise agreed in writing.
• Client shall have access to and rights to copies of all such materials. Contractor shall retain records only as required by Kentucky professional standards.

10. Compliance with Laws

• Contractor shall comply with all applicable anti-fraud, anti-money laundering, and other relevant state and federal regulations specific to the accounting profession.

11. Subcontracting

• Contractor shall not subcontract any services under this Agreement without the prior written consent of the Client, which consent shall not be unreasonably withheld. All subcontractors must adhere to the same standards of confidentiality and compliance.

12. Liability and Indemnification

• Contractor shall indemnify and hold harmless Client from any claims, losses, or damages arising from Contractor's breach of this Agreement, professional negligence, or violation of any applicable laws or regulations, to the extent permitted by Kentucky law.

13. Term and Termination

• Option A: This Agreement shall commence on [Start Date] and continue until [End Date].
• Option B: This Agreement shall continue until terminated by either party with [Number] days written notice.
  • Client may terminate this Agreement immediately for material breach by Contractor. Upon termination, Contractor shall promptly return all Client documents and data.

14. Dispute Resolution

• Any disputes arising under this Agreement shall be resolved through negotiation and, if unsuccessful, mediation and arbitration within Kentucky, in accordance with Kentucky law. The venue for any such proceedings shall be [County/City] County, Kentucky.

15. Representations and Warranties

• Each party represents and warrants that they have the legal capacity and authority to enter into this Agreement. Contractor warrants that this Agreement does not conflict with any other obligations or Kentucky business interests.

16. Notice

• All notices under this Agreement shall be in writing and delivered by [Method of Notice, e.g., certified mail, email] to the addresses listed above.

17. Continuing Education

• Contractor shall maintain continuing professional education to remain compliant with the requirements of the Kentucky Board of Accountancy.

18. Miscellaneous

• Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
• Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings.
• Waiver: No waiver of any provision of this Agreement shall be effective unless in writing and signed by the party against whom the waiver is sought to be enforced.
• Amendment: This Agreement may be amended only by a written instrument signed by both parties.

19. Non-Compete/Non-Solicitation/Non-Disparagement

• Option A: Contractor agrees not to compete with Client in the accounting service sector within [Geographic Area] for a period of [Number] years following termination of this Agreement.
• Option B: Contractor agrees not to solicit Client’s employees or clients for a period of [Number] years following termination of this Agreement.
• Option C: This agreement contains no non-compete, non-solicitation, or non-disparagement clauses.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

_______________________________
[Client Full Legal Name]
Date: [Date]

_______________________________
[Accounting Contractor Full Legal Name]
Date: [Date]