An employment contract is between an employer and the employee being hired to perform a service in exchange for payment. An employee’s pay, benefits, and other terms of employment are negotiated between the parties during the hiring process. After hiring, workers are commonly considered ‘W-2 employees’ and have their payroll taxes withheld from compensation.
An employee contract template can be used to formalize your employment agreement with a new employee. Employee contracts contain details like hours of work, the rate of pay, the employee’s responsibilities, etc. In the event of a dispute or disagreement about the terms of employment, both parties can refer to the contract.
