What does a contract with a freelancer do?
- It motivates you both to stay compliant and on time with commitments.
- It describes what a completed project looks like and allows the company to formally document this expense.
- A contract prevents either party from failing to fulfill their obligations.
- It provides formalized agreements, so acceptance of results, discussion, and payment happen faster thanks to documented results from the initial discussion.
When working with a freelancer, the client company does not pay taxes. The freelancer will pay income tax as a self-employed individual. Now let’s look at what should be included in the contract so that it fulfills its regulatory function.