An Independent Contractor is a self-employed individual or business hired to perform specific services or tasks for a client or company under a contract, without being treated as an employee. Independent contractors have control over how they complete their work, supply their own tools, and are responsible for their own taxes, insurance, and benefits. They do not receive employee benefits and are not subject to the same labor protections as employees.
Simplify credential management
Tracking employee certifications and licenses doesn't have to be complicated. Expiration Reminder helps you send automated notification and keep your company compliant.
Key Facts
- Control: Independent contractors control how and when work is done.
- Taxes: They pay their own self-employment taxes, including Social Security and Medicare.
- Contracts: Work is governed by a contract specifying scope, deadlines, and payment.
- Benefits: Typically do not receive benefits like health insurance, paid leave, or retirement plans from the client.
- Legal Distinction: Misclassification as an independent contractor instead of employee can result in legal penalties.
1. What is an independent contractor?
A self-employed person hired to complete specific work without employee status.
2. How is an independent contractor different from an employee?
Contractors control their work methods, pay their own taxes, and do not get employee benefits.
3. Can independent contractors receive benefits from the hiring company?
Generally no; they are responsible for their own benefits and insurance.
4. Why is correct classification important?
Misclassifying employees as contractors can lead to fines and back taxes.
5. How are independent contractors paid?
Usually by invoice or per project rather than regular wages or salary.
Make sure your company is compliant
Say goodbye to outdated spreadsheets and hello to centralized credential management. Avoid fines and late penalties by managing your employee certifications with Expiration Reminder.
.png)
