If the contracting entity decides to pay the contractor for the services referred to in point 1.b by the hour, the contracting entity shall pay the contractor hourly for the hours actually spent within ten (10) days from the date of an invoice from the contractor. Where the contracting entity decides, in accordance with point 1.b to pay a fixed fee to the contractor at a fixed price, the contracting entity shall pay the holder, on the first of each calendar month, the full fixed fee. Such payment is a condition precedent for the Contractor`s performance obligation in accordance with Section 1.b. If you track who is an employee and who is a contractor, it is guaranteed that a company is able to file taxes correctly and comply with labor law. A construction contract is a written document between a landowner and a general contractor indicating the work, renovations, modifications or other work to be done on the land owner`s house or land. This document describes the parties who are responsible for paying the price to be paid, the duties of each party and the date on which construction begins and is completed. When the entrepreneur has access to corporate connections, it is especially important to discuss how this information should be stored and used. This is what we see most often in virtual assistants and social media managers. Employers must pay a portion of payroll tax to employees, while independent contractors file their own personal tax returns.