For many individuals, self-employment as an independent contractor can be a rewarding and satisfying career option. As is true with any employment relationship you enter, it’s important to understand the roles and responsibilities of everyone involved.
Q3. How will I be paid?
Reputable organizations typically disclose the terms and conditions of payment through a written compensation agreement. If commission is involved, the agreement should indicate whether the contractor is paid on a commission-only basis, draw vs. commission, or combination of base fee plus commission. The agreement will also describe how and when payment will be made. The terms of each applicable pay structure should be spelled out clearly in writing and agreed to by all parties before work is performed. The agreement should also clearly explain how payment disputes are settled. (Note: Remedies are available to independent contractors should a dispute involving payment for services arise. As independent contractors are self-employed, any dispute involving payment would be resolved either independently or with the help of dispute resolution services, such as collection services, mediation, or arbitration.)
As with any agreement, you should seek advice and counsel from a trusted professional before signing and sign only when you fully understand what you are agreeing to.