If the worker qualifies as an IC under your state’s unemployment compensation law, do not pay unemployment compensation taxes for him or her. (See Chapter 6 for more about unemployment issues and ICs.) The IC will not be entitled to receive unemployment compensation benefits when the work is finished or the agreement terminated.
Suggested Language
Unemployment Compensation
Client shall make no state or federal unemployment compensation payments on behalf of Contractor or Contractor’s employees or contract personnel. Contractor will not be entitled to these benefits in connection with work performed under this Agreement.