Independent contractor

contractorindependent contractorscontractorscontractingcontract workersindependent consultantsprivate contractorcivilian contractorscontractcontract employees
An independent contractor is a natural person, business, or corporation that provides goods or services to another entity under terms specified in a contract or within 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 this term specifically motions to 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). The ubiquity of the form has also led to use of the phrase "1099 workers" or "the 1099 economy" to refer to the independent contractors themselves.

Employment

employeeemployeremployees
Unlike an employee, an independent contractor does not work regularly for an employer but works as and when required, during which time he or she may be subject to law of agency.
Freelancers, Consultants and Contractors

Overtime

overtime payOTextra time
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
In the United States, an Internal Revenue Service computer algorithm matches individuals with Form 1099s to the company that pays them. If an independent contractor reports more than $10,000 of earnings, or majority of income from a single source, the IRS is likely to question the independence of the worker, and investigate the company that issued the Form 1099.
The form is used to report payments to independent contractors, rental property income, income from interest and dividends, sales proceeds and other miscellaneous income.

Uber

Uber Technologies Inc.sexual harassment allegations at UberUber Driver
Firms in the sharing economy such as Uber can gain substantial advantages via the misclassification of employees as independent contractors.
Uber drivers are considered independent contractors and not employees, though this has been the subject of lawsuits in several jurisdictions; see Uber#Criticism.

Sole proprietorship

sole proprietorsole traderproprietorship
An independent contractor can itself be a business with employees; however, in most cases in the United States independent contractors operate as a sole proprietorship or single-member limited liability company. This means the independent contractor, as a business owner, incurs its own expenses to provide the contracted service, must acquire its own equipment to perform the service, and is responsible for business filings such as income tax returns.
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 an employee, an independent contractor does not work regularly for an employer but works as and when required, during which time he or she may be subject to law of agency.
Independent contractor

Self-employment

self-employedSelf–employedself-employment tax
Many people simply like the idea of "being your own boss." Aside from materialistic benefits, many people simply enjoy not having to answer to a supervisor.
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

sharingsharing economiescollaborative consumption
Firms in the sharing economy such as Uber can gain substantial advantages via the misclassification of employees as independent contractors.
Xconomy wrote about the debate over the status of the workers within the sharing economy, whether they should be treated as contract workers 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

employee misclassificationillegal in the United Statesindependent contractors
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

invitees
1) where the contractor injures an invitee to the real property of the employer,
If an independent contractor hired by the landowner injures an invitee (intentionally or through negligence), the owner can be held vicariously liable.

Natural person

naturalnatural personsindividual
An independent contractor is a natural person, business, or corporation that provides goods or services to another entity under terms specified in a contract or within a verbal agreement.

Business

for-profitenterprisefirm
An independent contractor is a natural person, business, or corporation that provides goods or services to another entity under terms specified in a contract or within a verbal agreement.

Corporation

corporatecorporationsincorporated
An independent contractor is a natural person, business, or corporation that provides goods or services to another entity under terms specified in a contract or within a verbal agreement.

Goods

goodeconomic goodcommodity
An independent contractor is a natural person, business, or corporation that provides goods or services to another entity under terms specified in a contract or within a verbal agreement.

Service (economics)

servicesserviceBusiness Services
An independent contractor is a natural person, business, or corporation that provides goods or services to another entity under terms specified in a contract or within a verbal agreement.

Contract

contract lawcontractsagreement
An independent contractor is a natural person, business, or corporation that provides goods or services to another entity under terms specified in a contract or within a verbal agreement.

Oral contract

oral agreementverbal agreementverbal contract
An independent contractor is a natural person, business, or corporation that provides goods or services to another entity under terms specified in a contract or within a verbal agreement.

Limited company

LimitedLtdlimited 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 companiesParasolumbrella
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. In the United States, an Internal Revenue Service computer algorithm matches individuals with Form 1099s to the company that pays them. If an independent contractor reports more than $10,000 of earnings, or majority of income from a single source, the IRS is likely to question the independence of the worker, and investigate the company that issued the Form 1099.