Step 2: Create Written Employment Agreement


An employer/employee agreement is a supporting document, which further solidifies the working relationship between you and your employee(s).


The following information should be kept in mind as you create your agreement:

  • The services provided by your employee(s) must be real, and specific work activities should be clearly understood and defined. In order to justify compensation, the services performed by your employee(s) must be important to the success of the business.
  • Compensation should be paid to each employee on a regularly scheduled basis (no less than monthly) and must be in the form of W-2 wages and medical reimbursements. The total compensation package for each employee (combined wages and reimbursements) must be realistic and reasonable.


CLICK HERE to download the Sample Written Employment Agreement

Sample Written Employment Agreement

You may model your own written employment agreement using the sample in the above link. A copy of this form can also be obtained by clicking the “Downloads” tab and scroll to the bottom. Your agreement should outline the duties to be performed by your employee and the method of compensation. You should refer to “Section D: Elected Benefits” on your SPD when looking for the medical reimbursement amount to list on your Written Employment Agreement. We recommend that the employer and the employee sign the Written Employment Agreement and each keep a copy.

Note: Employers may be required to purchase Workers’ Compensation Insurance. Contact your State Industrial Commission or Workers’ Compensation Bureau to determine your state requirements. (Be sure to mention spousal employment.)



Step 1Verify Legal Documentation  |  Step 3Pay Employee W-2 Wage