Maryland accounting independent contractor agreement template

Maryland Accounting Independent Contractor Agreement

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

• [Client Name], located at [Client Address], hereinafter referred to as "Client,"
• and
• [Contractor Name], located at [Contractor Address], hereinafter referred to as "Contractor."

Scope of Services

The Contractor agrees to provide the following accounting services to the Client:

• Option A: Preparation of Financial Statements (Balance Sheet, Income Statement, Cash Flow Statement).
• Option B: Tax Preparation and Filing (Federal, Maryland State, and Local).
• Option C: Bookkeeping Services (Monthly, Quarterly, or Annually).
• Option D: Payroll Processing (including Maryland withholding and unemployment taxes).
• Option E: [Specify other accounting services]

Deliverable Standards: All services shall be performed in accordance with Generally Accepted Accounting Principles (GAAP) or other applicable standards and regulations, including those specific to Maryland.

Service Scope Limits: The Contractor's responsibilities are limited to the services explicitly listed above. Any additional services requested by the Client will be subject to a separate agreement and fee arrangement.

Milestone Dates:

• [Milestone 1 Description]: [Date]
• [Milestone 2 Description]: [Date]

Deliverable Formats: All reports and deliverables will be provided in [Format, e.g., PDF, Excel].

Periodic Reporting: The Contractor will provide the Client with progress reports on a [Frequency, e.g., weekly, monthly] basis.

Service Response Time: The Contractor will respond to Client inquiries within [Number] business days.

Working Arrangements

• Option A: Services will be performed at the Client's office located at [Client Office Address].
• The Contractor will adhere to the Client's security protocols while on-site.
• Option B: Services will be performed at the Contractor's premises located at [Contractor Office Address].
• Option C: Services will be performed remotely.

Access to Financial Records: The Client will provide the Contractor with necessary access to financial records, including [List of Records].

Equipment and Software:

• Option A: The Client will provide all necessary equipment and software.
• Option B: The Contractor will provide all necessary equipment and software.

Data Custody: The Contractor will maintain the confidentiality and security of all Client data.

Compensation

• Option A: Hourly Rate: The Contractor will be paid at an hourly rate of [Dollar Amount] per hour.
• Option B: Flat Fee: The Contractor will be paid a flat fee of [Dollar Amount] for the completion of the services outlined in Section 1.
• Option C: Per Deliverable: The Contractor will be paid [Dollar Amount] per deliverable. Deliverables include [List Deliverables].
• Option D: Retainer: The Contractor will be paid a monthly retainer of [Dollar Amount].

Payment Terms: Invoices will be submitted [Frequency, e.g., monthly] and are due within [Number] days of receipt.

Invoicing Requirements: Invoices must include the date, a detailed description of services provided, the hourly rate (if applicable), and the total amount due. If Maryland sales/use tax is applicable, it will be added to the invoice.

Payment Instructions: Payments can be made via:

• Option A: ACH transfer to [Bank Name], [Account Number], [Routing Number].
• Option B: Check payable to [Contractor Name] and mailed to [Contractor Address].

Late Payment Fees: Late payments will be subject to a late fee of [Percentage]% per month.

Fee Adjustment/Reimbursement: The Client will reimburse the Contractor for reasonable expenses incurred in connection with the services, upon presentation of receipts.

Data Security, Confidentiality, and Privacy

The Contractor agrees to maintain the confidentiality of all Client information and will not disclose any non-public information to any third party.

The Contractor will comply with all applicable data security and privacy laws, including Maryland's Personal Information Protection Act.

In the event of a data breach, the Contractor will notify the Client immediately and will take all necessary steps to mitigate the damage.

The Contractor agrees to adhere to the AICPA Code of Professional Conduct.

Independent Contractor Status

The Contractor is an independent contractor and not an employee of the Client. This Agreement does not create an employer-employee relationship, partnership, joint venture, or agency relationship.

The Contractor is responsible for all federal, Maryland state, and local taxes, including self-employment tax.

The Contractor is not entitled to any employee benefits, including social security, workers' compensation, or unemployment insurance.

The Contractor is responsible for obtaining and maintaining all necessary insurance coverage, including professional liability insurance.

Professional Licenses

• Option A: The Contractor represents and warrants that they hold a valid Certified Public Accountant (CPA) license in the State of Maryland, license number [License Number].
• Option B: The Contractor represents and warrants that they hold a [Other License] license in the State of Maryland, license number [License Number].

The Contractor agrees to maintain their professional license in good standing and comply with all applicable regulations of the Maryland Board of Public Accountancy or comparable oversight.

Intellectual Property

All work product created by the Contractor for the Client shall be owned by the Client, excluding any pre-existing materials or templates used by the Contractor.

The Contractor retains ownership of any templates or pre-existing materials.

Upon termination of this Agreement, the Contractor will return all Client data and materials to the Client.

Indemnification and Limitation of Liability

The Contractor agrees to indemnify and hold harmless the Client from any claims, losses, or damages arising out of the Contractor's negligence or willful misconduct.

The Client agrees to indemnify and hold harmless the Contractor from any claims, losses, or damages arising out of the Client’s negligence or willful misconduct.

The Contractor’s liability for any errors or omissions shall be limited to the amount of fees paid by the Client to the Contractor under this Agreement.

The Contractor maintains professional liability (E&O) insurance with limits of not less than [Dollar Amount]. Contractor will provide Client with a certificate of insurance upon request.

Conflict of Interest

The Contractor agrees to disclose any potential conflicts of interest to the Client.

The Contractor agrees not to solicit or accept business from the Client's clients during the term of this Agreement and for a period of [Number] years after termination.

Regulatory and Tax Audit Assistance

The Contractor will provide reasonable assistance to the Client in the event of a regulatory or tax audit.

The Contractor will retain all working papers for a period of [Number] years.

The Client shall have access to the Contractor's working papers for a period of [Number] years after termination of this agreement.

Dispute Resolution

Any disputes arising out of or relating to this Agreement shall be resolved through good-faith negotiation.

If negotiation fails, the parties agree to attempt mediation in Maryland.

If mediation fails, the parties agree to binding arbitration in Maryland, governed by Maryland law.

This Agreement shall be governed by and construed in accordance with the laws of the State of Maryland.

Termination

This Agreement may be terminated by either party upon [Number] days written notice.

This Agreement may be terminated immediately for cause, including breach of this Agreement or violation of Maryland law.

Upon termination, the Contractor will return all Client data and materials to the Client.

The Client will pay the Contractor for all services performed up to the date of termination.

Compliance with Laws

The Contractor will comply with all applicable federal and Maryland laws, including data protection, anti-fraud, and anti-money laundering laws.

The Contractor agrees to complete all required continuing professional education (CPE) hours as mandated by the Maryland Board of Public Accountancy.

Records Handling

Upon termination of this Agreement, the Contractor will either return or destroy all Client files in accordance with Maryland law.

The Contractor will comply with Maryland's Personal Information Protection Act in the event of a data breach.

Assignment

The Contractor may not assign this Agreement without the prior written consent of the Client.

The Contractor may not delegate work to subcontractors without the prior written consent of the Client.

Specific Requirements

The Contractor understands that the Client's business model is [Client Business Model] and will tailor accounting services accordingly.

Amendment and Waiver

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.

Notices

All notices under this Agreement shall be in writing and delivered to the addresses listed above.

Notices may be sent by certified mail, email, or personal delivery.

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

____________________________

[Client Name]

____________________________

[Contractor Name]