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Independent Contractor Payment Terms
"I need Independent Contractor Payment Terms for my technology consulting firm based in Auckland, New Zealand, with monthly payment schedules and specific provisions for milestone-based bonuses for software development projects starting January 2025."
1. Parties: Identification of the contracting company and the independent contractor, including full legal names, addresses, and business numbers
2. Background: Context of the agreement, establishing the independent contractor relationship and purpose of the payment terms
3. Definitions: Key terms used throughout the document, including payment-related terminology
4. Payment Terms: Core payment provisions including rates, frequency, and payment methods
5. Invoice Requirements: Specifications for invoice format, content, and submission procedures
6. Payment Processing: Timeframes for payment processing, approval procedures, and payment methods
7. Tax Obligations: GST requirements, withholding tax, and other tax-related obligations
8. Dispute Resolution: Process for handling payment disputes and discrepancies
9. Term and Termination: Duration of the payment terms and conditions for modification or termination
10. General Provisions: Standard legal provisions including governing law, notices, and amendments
1. Performance-Based Payments: Include when payment is tied to specific deliverables or performance metrics
2. Currency and Exchange: Required for international contractors or when payments are made in foreign currency
3. Expense Reimbursement: Include when the contractor may claim certain expenses
4. Payment Security: Add when dealing with high-value contracts or requiring payment bonds
5. Milestone Payments: Include for project-based work with defined payment stages
6. Third-Party Payments: Required when payments may be assigned or made to third parties
7. Late Payment Interest: Include when specifying interest charges for overdue payments
8. Payment Retention: Add for contracts requiring holding back certain payment amounts
1. Schedule 1: Fee Schedule: Detailed breakdown of rates, fees, and payment amounts
2. Schedule 2: Payment Milestones: Timeline of payment stages and associated deliverables
3. Schedule 3: Invoice Template: Standard format for contractor invoices
4. Schedule 4: Service Level Requirements: Performance metrics tied to payment terms
5. Appendix A: Bank Details Form: Template for contractor's payment receipt details
6. Appendix B: Tax Declaration: Required tax forms and declarations
7. Appendix C: Expense Policy: Guidelines for reimbursable expenses and claiming procedures
Authors
Technology
Construction
Professional Services
Creative Industries
Consulting
Manufacturing
Healthcare
Education
Real Estate
Marketing and Advertising
Engineering
Research and Development
Media and Entertainment
Legal
Finance
Procurement
Human Resources
Operations
Accounts Payable
Risk and Compliance
Commercial
Project Management
Vendor Management
Procurement Manager
Finance Director
Contract Administrator
Project Manager
Human Resources Manager
Legal Counsel
Operations Manager
Accounts Payable Manager
Commercial Manager
Business Unit Director
Chief Financial Officer
Vendor Relations Manager
Risk and Compliance Officer
Financial Controller
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