Independent contractor

contractorindependent contractorscontractorscontractingindependent consultantsprivate contractorcivilian contractorscontractcontract employeescontract job
An independent contractor is a person, business, or corporation that provides goods or services under a written contract or a verbal agreement.wikipedia
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Freelancer

freelancefreelance writerfreelance journalist
Independent contractors are usually paid on a freelance basis.
While the term independent contractor would be used in a higher register of English to designate the tax and employment classes of this type of worker, the term "freelancing" is most common in culture and creative industries, and use of this term may indicate participation therein.

Form 1099-MISC

1099-MISC1099
In the United States, any company or organization engaged in a trade or business that pays more than $600 to an independent contractor in one year is required to report this to the Internal Revenue Service (IRS) as well as to the contractor, using Form 1099-MISC.
One notable use of Form 1099-MISC is to report amounts paid by a business (including nonprofits ) to a non-corporate US resident independent contractor for services (in IRS terminology, such payments are nonemployee compensation).

Employment

employeeemployeremployees
Unlike employees, independent contractors do not work regularly for an employer but work as required, when they may be subject to law of agency.
Employees are often contrasted with independent contractors, especially when there is dispute as to the worker's entitlement to have matching taxes paid, workers compensation, and unemployment insurance benefits.

Overtime

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Employees are also entitled to receive overtime pay for work performed over the 40-hour-per-week standard, whereas independent contractors may work any number of hours (including far above this standard) with no change in pay.
Independent contractors are not considered employees and therefore are not protected by the FLSA.

Form 1099

10991099 forms1099-B
The form is used to report payments to independent contractors, rental property income, income from interest and dividends, sales proceeds and other miscellaneous income.

Sole proprietorship

sole proprietorsole traderproprietorship
The license for a sole proprietary business entitles the owner to hire employees and enlist the services of independent consultants.

Law of agency

agentagencyagents
Unlike employees, independent contractors do not work regularly for an employer but work as required, when they may be subject to law of agency.

Self-employment

self-employedSelf–employedself-employment tax
In the United States, any person is considered self-employed for tax purposes if that person is running a business as a sole proprietorship, independent contractor, as a member of a partnership, or as a member of a limited liability company that does not elect to be treated as a corporation.

Sharing economy

Access economysharingsharing economies
Firms in the sharing economy such as Uber can gain substantial advantages via the misclassification of employees as independent contractors.
There is debate over the status of the workers within the sharing economy; whether they should be treated as independent contractors or employees of the companies.

Statutory employee

There is a transitional status for employees as an alternative to independent contracting known as being a statutory employee.
A statutory employee is an independent contractor under American common law who is treated as an employee, by statute, for purposes of tax withholdings.

Misclassification of employees as independent contractors

independent contractorsIRS Reclassificationemployee misclassification
Firms in the sharing economy such as Uber can gain substantial advantages via the misclassification of employees as independent contractors.
IRS reclassification as an employee occurs where persons claimed as (or claiming to be) independent contractors are recategorized by the Internal Revenue Service (IRS), or by state tax authorities, as W-2 employees.

Invitee

inviteesBusiness invitee
If an independent contractor hired by the landowner injures an invitee (intentionally or through negligence), the owner can be held vicariously liable.

Business

for-profitenterprisefirm
An independent contractor is a person, business, or corporation that provides goods or services under a written contract or a verbal agreement.

Corporation

corporatecorporationsincorporated
An independent contractor is a person, business, or corporation that provides goods or services under a written contract or a verbal agreement.

Goods

goodeconomic goodcommodity
An independent contractor is a person, business, or corporation that provides goods or services under a written contract or a verbal agreement.

Service (economics)

servicesserviceBusiness Services
An independent contractor is a person, business, or corporation that provides goods or services under a written contract or a verbal agreement.

Contract

contract lawcontractsagreement
An independent contractor is a person, business, or corporation that provides goods or services under a written contract or a verbal agreement.

Oral contract

oral agreementverbal agreementverbal contract
An independent contractor is a person, business, or corporation that provides goods or services under a written contract or a verbal agreement.

Limited company

LimitedLtdlimited liability companies
Contractors often work through a limited company or franchise, which they themselves own, or may work through an umbrella company.

Franchising

franchisefranchisesfranchised
Contractors often work through a limited company or franchise, which they themselves own, or may work through an umbrella company.

Umbrella company

umbrella companiesumbrella associationParasol
Contractors often work through a limited company or franchise, which they themselves own, or may work through an umbrella company.

Tax information reporting

report
In the United States, any company or organization engaged in a trade or business that pays more than $600 to an independent contractor in one year is required to report this to the Internal Revenue Service (IRS) as well as to the contractor, using Form 1099-MISC.

Internal Revenue Service

IRSinternal revenueBureau of Internal Revenue
In the United States, any company or organization engaged in a trade or business that pays more than $600 to an independent contractor in one year is required to report this to the Internal Revenue Service (IRS) as well as to the contractor, using Form 1099-MISC.

Social Security (United States)

Social SecuritySocial Security ActSocial Security System
The distinction between independent contractor and employee is an important one in the United States, as the costs for business owners to maintain employees are significantly higher than the costs associated with hiring independent contractors, due to federal and state requirements for employers to pay FICA (Social Security and Medicare taxes) and unemployment taxes on received income for employees.

Medicare (United States)

MedicareMedicare (US)Medicare Catastrophic Coverage Act
The distinction between independent contractor and employee is an important one in the United States, as the costs for business owners to maintain employees are significantly higher than the costs associated with hiring independent contractors, due to federal and state requirements for employers to pay FICA (Social Security and Medicare taxes) and unemployment taxes on received income for employees.