What is an Independent Contractor?

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Generally, an individual is considered an independent contractor if they decide how the work they are going to do their work. Unlike employees, independent contractors aren't told by the company what to do and how to do it. Rather, what matter is the end result of the work - how it's completed is completely up to the contractor.

Additionally, independent contractors are not confined to a schedule set by their employer.

They typically set their own hours and are paid on a freelance basis, either a flat rate or per job rate. The duration of their work and the details of their pay is determined by a contract signed before the period of work begins.

Independent contractors are responsible for paying their own taxes to the IRS and to their state tax department. Generally, employers will not withhold the taxes of independent contractors. Independent contractors are not entitled to benefits, even those mandated by law like unemployment and worker's compensation, because they are not employees of a company.

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Also Known As: freelance worker, contractor

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