MASTER ERO INDEPENDENT CONTRACTOR AGREEMENT
1. INDEPENDENT CONTRACTOR STATUS
The ERO is an independent contractor and is not an employee, partner, joint venturer, or agent of the Service Bureau. The ERO shall have sole control over the manner and means of performing their tax preparation services, including setting their own hours, determining their own fees charged to clients, and managing their own office operations. The Service Bureau shall not withhold any federal, state, or local taxes from payments made to the ERO. The ERO is solely responsible for the payment of all self-employment taxes, income taxes, and any other applicable taxes. The ERO is not entitled to workers compensation, unemployment insurance, health insurance, or any other benefits provided to employees of the Service Bureau. The ERO shall operate under their own business name, utilize their own EFIN, and bear all expenses related to their business operations.
2. SERVICES PROVIDED BY SERVICE BUREAU
The Service Bureau shall provide the ERO with access to the tax preparation software selected during enrollment for the duration of the Term. The Service Bureau shall provide transmission and processing services required to electronically file tax returns and facilitate access to bank products through participating third-party banks. The ERO acknowledges that bank products are subject to the approval and terms of the participating banks, and the Service Bureau does not guarantee bank product approval. The Service Bureau shall provide technical support and basic training on tax return preparation and marketing strategies.
3. ERO OBLIGATIONS AND COMPLIANCE
The ERO agrees to strictly comply with all federal, state, and local laws and regulations governing tax preparation, including but not limited to IRS Circular 230, the Internal Revenue Code, and all IRS e-file rules and requirements. The ERO shall exercise due diligence in the preparation of all tax returns, specifically including the completion of Form 8867 for returns claiming EITC, CTC, ACTC, ODC, AOTC, and HOH filing status. The ERO must maintain a valid, active EFIN and PTIN throughout the Term. The ERO shall immediately notify the Service Bureau if their EFIN or PTIN is suspended, revoked, or under investigation. In accordance with the Gramm-Leach-Bliley Act and the FTC Safeguards Rule, the ERO must implement and maintain a Written Information Security Plan (WISP) to protect taxpayer data.
4. COMPENSATION AND PAYMENT TERMS
The ERO shall be compensated based on the fee structure and markups selected during enrollment. Payments shall be disbursed according to the schedule established by the participating bank and the Service Bureau, typically during the summer or early fall, provided the ERO is in good standing. The ERO is solely responsible for any chargebacks, unfunded returns, or fees rescinded by the bank or the IRS. The Service Bureau reserves the right to offset any chargebacks, debts, or outstanding balances owed by the ERO against any future payouts, markups, or rebates due to the ERO.
5. CONFIDENTIALITY AND NON-SOLICITATION
The ERO acknowledges that during the Term, they will have access to proprietary information, training materials, business systems, and trade secrets of the Service Bureau. The ERO agrees to hold all Confidential Information in strict confidence and shall not disclose or use such information for any purpose outside the scope of this Agreement. During the Term and for twenty-four (24) months following termination, the ERO shall not directly or indirectly solicit, recruit, or attempt to hire any employee, independent contractor, PTIN holder, or other ERO affiliated with the Service Bureau. This restriction is limited in geographic scope to the areas in which the Service Bureau actively operates and is consistent with North Carolina General Statutes Section 75-4. During the Term and for twelve (12) months following termination, the ERO shall not operate under or affiliate with any competing service bureau within the State of North Carolina.
6. INDEMNIFICATION AND LIABILITY
The ERO agrees to indemnify, defend, and hold harmless the Service Bureau, its officers, directors, employees, and agents from and against any and all claims, liabilities, damages, losses, audits, penalties, fines, and expenses (including reasonable attorneys fees) arising out of or related to: (a) the EROs preparation of tax returns; (b) the EROs breach of this Agreement; (c) the EROs violation of any law, regulation, or IRS rule; or (d) any fraud, negligence, or willful misconduct by the ERO or their staff. IN NO EVENT SHALL THE SERVICE BUREAU BE LIABLE FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, OR PUNITIVE DAMAGES, INCLUDING LOST PROFITS OR LOST REVENUE.
7. TERM AND TERMINATION
This Agreement shall commence on the Effective Date and shall remain in effect until September 30 of the current tax year, unless terminated earlier. A new agreement must be executed for each subsequent tax season. The Service Bureau may terminate this Agreement immediately without notice and revoke software access if the ERO: (a) breaches any material term; (b) violates IRS rules, Circular 230, or engages in fraudulent tax preparation; (c) has their EFIN or PTIN suspended or revoked; or (d) engages in conduct that damages the reputation of the Service Bureau. Either party may terminate for any reason upon thirty (30) days written notice. Upon termination, the ERO shall immediately cease using the Service Bureau software, Confidential Information, and branding. Indemnification obligations and non-solicitation provisions survive termination.
8. GENERAL PROVISIONS
This Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina. Any legal action arising out of this Agreement shall be brought exclusively in the state or federal courts located in Hoke County, North Carolina. This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements. This Agreement may not be amended except in writing signed by an authorized representative of the Service Bureau. If any provision is held invalid, the remaining provisions shall continue in full force and effect.
FUNDING RATIOS: ERO/EFIN HOLDERs are responsible for maintaining a satisfactory funding ratio for files submitted with bank products. The industry standard funding ratio is a minimum of 90%. Any ERO/EFIN HOLDERs with a funding ratio of below 90% may have their right to submit files with bank products rescinded by the bank in question. The Service Bureau is not liable in the event this should happen.
BY SUBMITTING THIS ENROLLMENT FORM AND PROVIDING AN ELECTRONIC SIGNATURE, THE ERO ACKNOWLEDGES THAT THEY HAVE READ, UNDERSTOOD, AND AGREE TO BE BOUND BY ALL TERMS AND CONDITIONS OF THIS MASTER ERO INDEPENDENT CONTRACTOR AGREEMENT.