Outsourced Services Agreement

A service agreement puts down in no uncertain terms all the services that the client ordered and the contractor agreed to perform. On the other hand, a bill of sale is like a receipt or invoice that documents the transaction of goods. In most cases, a bill of sale (as opposed to the aforementioned receipt) is used in the sales of more valuable items like cars. A service agreement and a bill of sale can be used in combination in a single job.

The difference between an independent contractor and an employee mostly revolves around the law. For example, there are federal and state minimum wages and various overtime regulations that must be offered to employees, but not an independent contractor. By law, both the employer and the employee have to pay payroll taxes, with the latter also having the federal and state income taxes withheld. As for an independent contractor, unless the annual income exceeds a certain amount, he or she does not have to prepay taxes.

Most jobs can be outsourced; it is just a matter of practicality. Some of the professions that are often outsourced are web designers and programmers. A profession that was previously commonly outsourced to other countries was the telephone customer service rep – “previously” because it is not as common anymore.

If a person or a business is to hire an independent contractor, it would make sense for the person or company to protect themselves through the use of an independent contractor confidentiality agreement. For the service provider to perform his or her job as ordered, he or she may have to be privy to sensitive information that the client will want to keep secret. This agreement prevents the service provider or independent contractor from disclosing confidential information at the threat of litigation.

A services work order may accompany a service agreement of any kind as additional job orders. You can use a services work order on top of a service agreement.