NOTE - This is a sample agreement used by Jeff Beck for many years.  It may be advisable to consult with an aviation attorney.  However, it is not rocket science, this agreement is primarily designed to quantify the points of agreement between and operator and the flight crew member, not much more than that.  The bottom IRS Rule is quoted to help define the "Contractor Status" of the flight crew member, and take the burden off the Operator, so it is to their advantage to have that paragraph in the agreement.

Also, and this is important.  If you provide a "Contract" written by a lawyer with all the leaglese BS, then the Chief Pilot may have reservations about signing such a document and you will loose the gig.

That being said, here is what I have used for many years, it is plain, simple, succinct and to the point, to make way for an understanding between you and the Operator without confusion.

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Pilot Services Agreement Contract (Sample)

This Pilot Service Agreement Contract between JOHN Q PILOT, and the Operator/Client ___________________ is made this date, and shall continue in effect until such time as the parties make changes in writing.

To comply with the "contractual requirements" of the IRS "Hidden Employee" twenty question factor test (Section 530, IRS "Safe Harbor" Ruling, 1978 "Contractor Status"), and equally important, to preclude any misunderstandings between us, I believe we discussed the following:

My Pilot Services will be invoiced at a rate of $800 per day (G1159 & GIV), OR $1,200 per day (GV) regardless of Flight Crew Position assignment or other duties and responsibilities, which may be assigned by the Company. Travel days and layover days are considered chargeable days. Any exceptions or discounts to this will be addressed on an individual basis.

Any airline travel involving "International Destinations," including Alaska, Hawaii, will be booked and expensed in "Business Class" or better, seating assignments. International flight segments will be booked on US Air Carriers. All flights will be bought and paid for (reimbursed expenses) by JOHN Q PILOT using his own American Express Credit Card. This is for the purposes of Flight Insurance protection.

Your company will cover expenses, and any normal and reasonable expenses I incur on your behalf will be reimbursed. Such expenses would include, but are not limited to, airfare, hotel, meals, transportation, direct business related cellular calls, laundry, tips, etc.

Upon completion of this contract assignment, I will invoice Services and Expenses, which are due and payable upon receipt. Such "Services" payments, excluding "Expenses", should be reported on IRS Form 1099. Check should be made out to "JOHN Q PILOT".

INSURANCE CONSIDERATIONS: The Client hereby agrees to indemnify and forever hold harmless JOHN Q PILOT, his heirs and relatives, from and against any liability, whatsoever (including reasonable attorney's fees) arising out of or in any way connected with any damage to or destruction of any aircraft or death, injury or loss resulting from or occasioned by performance of the services rendered pursuant to this agreement. JOHN Q PILOT, and any named representative(s) shall be named as additional insured on policies of insurance covering the aircraft. The Client shall obtain a waiver of subrogation from the hull insurance underwriters in favor of JOHN Q PILOT, his heirs and relatives, in connection with theses services.

If the above terms are understood and agreed upon, please sign and return to me via fax (702-111-2222)

 

____________________________ _________________________ _______________ ____________

Signature Name Title Date

Thank you very much for your business.

John Q Pilot

STATEMENT OF "CONTRACTOR" STATUS FOR I.R.S. PURPOSES (Section 530, IRS "Safe Harbor" Ruling, 1978)

I, JOHN PILOT (SSN xxx-xx-xxx), do hereby certify that I am in business as a sole proprietor to provide "Contract Pilot Services", to the general public, for aviation services as pertains to the flight operation of aircraft owned or controlled by the "client." It is understood by the parties that PILOT is an independent contractor with respect to the OPERATOR, and not an employee of the OPERATOR. It is therefore understood and agreed, that the relationship of PILOT and the OPERATOR is for the purpose of mutual benefit, and both parties will endeavor that end. As an independent contractor, I agree to invoice said clients for services, and thereafter am solely responsible for paying my own Federal Income Tax, Social Security Tax, and any Taxes due the State of Nevada where I reside and do business. I will not hold the client responsible for any other benefits, workman's compensation, Social Security payments, Unemployment Taxes, or other payroll liabilities, nor would I deem to classify my services under the auspices of "employee" as regards this relationship.