Pennsylvania accounting independent contractor agreement template

Pennsylvania Accounting Independent Contractor Agreement

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

• [Client Full Legal Name], a [Client Business Entity Status, e.g., Pennsylvania LLC], with a principal place of business at [Client Full Contact Address], hereinafter referred to as "Client," and
• [Contractor Full Legal Name], a [Contractor Business Entity Status, e.g., Sole Proprietorship], with a principal place of business at [Contractor Full Contact Address], and holding Pennsylvania CPA license number [CPA License Number] or firm registration number [Firm Registration Number], hereinafter referred to as "Contractor."

1. Scope of Services

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

• Option A: Financial Statement Preparation
  • Prepare [Type of Financial Statements, e.g., quarterly and annual] financial statements in accordance with [Accounting Standards, e.g., Generally Accepted Accounting Principles (GAAP)].
  • Deliverables include: [Specific deliverables, e.g., Balance Sheet, Income Statement, Statement of Cash Flows, Statement of Retained Earnings].
  • Project Timeline: [Specific project timeline, e.g., Quarterly statements within 30 days of quarter end, annual statements within 90 days of year end].
• Option B: Account Reconciliation
  • Reconcile bank accounts, credit card accounts, and other accounts as agreed upon.
  • Deliverables include: [Specific deliverables, e.g., Reconciliation reports for each account].
  • Reporting Frequency: [Reporting frequency, e.g., monthly].
• Option C: Tax Return Preparation
  • Prepare and file [Type of Tax Return, e.g., Pennsylvania personal income tax return, Pennsylvania corporate net income tax return] in compliance with federal and Pennsylvania Department of Revenue rules.
  • Deliverables include: [Specific deliverables, e.g., completed tax returns, supporting schedules].
  • Deadline: [Specific deadline, e.g., filing deadline for tax returns].
• Option D: Bookkeeping
  • Maintain accurate and up-to-date books and records using [Accounting Software, e.g., QuickBooks].
  • Reporting Frequency: [Reporting frequency, e.g., Weekly transaction recording, monthly report generation].
• Option E: Audit Support
  • Assist with internal or external audits.
  • Access to Records: Access to required records and software as reasonably necessary.

2. Work Location and Data Security

• Option A: On-Site
  • The Contractor shall perform services at the Client's premises located at [Client Full Contact Address].
• Option B: Remote
  • The Contractor shall perform services remotely.
  • Data Security: The Contractor shall comply with Pennsylvania data security laws and industry best practices for sensitive financial information.
  • The Contractor shall use [Specific Security Measures, e.g., encrypted communication, secure file transfer protocols].
  • The Contractor shall ensure compliance with the Pennsylvania Breach of Personal Information Notification Act.

3. Compensation

• Option A: Hourly Rate
  • The Client shall pay the Contractor at an hourly rate of [Hourly Rate] per hour.
  • Invoices: The Contractor shall submit invoices [Invoice Frequency, e.g., bi-weekly] with itemized descriptions of services performed.
• Option B: Per Project
  • The Client shall pay the Contractor a fixed fee of [Project Fee] per project.
  • Payment Schedule: [Payment schedule, e.g., 50% upfront, 50% upon completion].
• Option C: Retainer
  • The Client shall pay the Contractor a retainer of [Retainer Amount] per [Retainer Period, e.g., month].
• Tax Handling: The Client is responsible for issuing a 1099 form to the Contractor if payments exceed IRS and Pennsylvania thresholds.
• Payment Timeline: Payments are due within [Number] days of invoice receipt.
• Late Payment Penalty: A late payment penalty of [Percentage]% per month will be assessed on overdue invoices.

4. Ownership and Confidentiality

All work products, including financial records, spreadsheets, tax filings, client confidential information, and software customizations, are the exclusive property of the Client.

• Option A: Confidentiality
  • The Contractor shall maintain the confidentiality of all Client information in accordance with Pennsylvania CPA confidentiality standards and protections under the Pennsylvania Right to Know Law.
• Option B: Nondisclosure
  • The Contractor shall not disclose any Client information to any third party without the Client's prior written consent.

5. Independent Contractor Status

The Contractor is an independent contractor under Pennsylvania law.

• The Contractor is responsible for all federal, Pennsylvania state, and local income and self-employment taxes.
• The Contractor is responsible for maintaining workers' compensation and liability insurance.
• The Contractor is responsible for professional license renewals and continuing education as per the Pennsylvania Board of Accountancy.

6. Subcontracting and Assignment

The Contractor shall not use subcontractors or assign this Agreement without the Client's prior written consent.

7. Liability and Indemnification

The Contractor shall indemnify and hold harmless the Client from any liability arising from error, professional negligence, breach of client information, failure to comply with state or federal tax rules, or violation of Pennsylvania Board of Accountancy regulations.

• Insurance: If required, the Contractor shall maintain professional liability or errors and omissions (E&O) coverage with minimum coverage of [Insurance Amount].

8. Termination

• Option A: Termination for Cause
  • Either party may terminate this Agreement for cause upon [Number] days written notice.
• Option B: Termination for Convenience
  • The Client may terminate this Agreement for convenience upon [Number] days written notice.
• Handling of Work Product: Upon termination, the Contractor shall promptly return all work product and confidential data to the Client.

9. Governing Law and Venue

This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. Any disputes arising under this Agreement shall be subject to the jurisdiction of the courts in [Pennsylvania County] County, Pennsylvania.

10. Dispute Resolution

• Option A: Negotiation
  • The parties shall attempt to resolve any disputes through informal negotiation.
• Option B: Mediation
  • If negotiation fails, the parties shall attempt to resolve the dispute through mediation in [Pennsylvania City], Pennsylvania.
• Option C: Arbitration
  • Any dispute not resolved through negotiation or mediation shall be settled by binding arbitration in accordance with the rules of the American Arbitration Association.

11. Compliance with Laws

The Contractor shall comply with all relevant Pennsylvania and federal regulations governing accountants, including the Pennsylvania Board of Accountancy Act, continuing professional education (CPE) requirements, state anti-fraud and CPA ethics rules, IRS and Pennsylvania Department of Revenue standards, and compliance with anti-money laundering and professional conduct rules.

12. Special Pennsylvania Obligations

• The Contractor shall comply with all special Pennsylvania obligations, such as handling of client records if the contractor ceases business, local business privilege license and taxes in the Client’s municipality, and timely cooperation with state tax audits or regulatory inquiries.

13. Severability and Amendment

If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect. This Agreement may be amended only in writing signed by both parties.

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

[Client Full Legal Name]

By: [Client Printed Name]

Title: [Client Title]

[Contractor Full Legal Name]

By: [Contractor Printed Name]

Title: [Contractor Title]