Business Terms Glossary
Independent Contractor
Definition of Independent Contractor
An Independent Contractor is a person who practices an independent trade, business, or profession in which they offer their services to the public.
The person contracting for their services must have the right to control or direct only the result of the work and not the means and methods of accomplishing the result.
An employer who engages an independent contractor does not have to pay payroll taxes for the contractor. However, incorrectly classifying employees an independent contractors can lead to substantial tax penalties.
Independent Contractor References On This Site
These Gaebler.com articles mention this glossary term:
- Employees Versus Contractors - When you engage an independent contractor, you don't have to withhold or make employer...
- Federal Payroll Taxes - When you hire a contractor, you must simply: File employment information returns with the appropriate agencies to report amounts paid to independent contractors...
- From Real Estate Agent to Business Owner - What are some of the biggest differences you've noticed? Because I worked strictly commission as a Realtor, I didn't find a great difference between being an independent contractor and a CEO of my own company...
- Independent Contractor Contract Agreements - Every contract you sign with an independent contractor needs to include some essential details, including these...
- Wearing Too Many Hats - If you are experiencing a staff shortage, but can't afford to add any more employees, you may want to consider the services of an independent contractor...
- Home Business Ideas for Mompreneurs - Many moms find that a consulting business is a natural fit with their interests and abilities, especially if the career field they left routinely hires independent contractors. Some consulting relationships can be just as demanding as...
- Do I Have to Pay Payroll Taxes? - Even when you do business as a sole proprietor, if you engage employees or independent contractors, you will have payroll responsibilities...
- Independent Contractor Rules - How do you know if somebody you engage is an independent contractor...
- Using Independent Contractors to Avoid Payroll Taxes - If you haven't explored the possibility of farming out some (or even all) of your work to independent contractors you may be overlooking an opportunity to offload the...
- Independent Contractor Laws - Be aware that states may use different criteria to define whether somebody is an employee or an independent contractor. Talk to your accountant, lawyer or payroll provider to...
- Interview with Business Coach Diane Helbig - After deciding to start my own business, I became an independent contractor for that company so I would still be pulling...
- Interview with Toma Clark Haines, Founder of The Antiques Diva - I have employed independent contractors in three countries -- Belgium, Holland and France -- to work...
- Best Businesses For Entrepreneurs and Investors - Furthermore, independent contractors are often able to provide better response times if...
- Wearing Too Many Hats - If you are experiencing a staff shortage, but can't afford to add any more employees, you may want to consider the services of an independent contractor...
- Using Independent Contractors to Avoid Payroll Taxes - If you haven't explored the possibility of farming out some (or even all) of your work to independent contractors you may be overlooking an opportunity to offload the...
- Home Business Ideas for Mompreneurs - Many moms find that a consulting business is a natural fit with their interests and abilities, especially if the career field they left routinely hires independent contractors. Some consulting relationships can be just as demanding as...
- Do I Have to Pay Payroll Taxes? - Even when you do business as a sole proprietor, if you engage employees or independent contractors, you will have payroll responsibilities...
- Employees Versus Contractors - When you engage an independent contractor, you don't have to withhold or make employer...
- Independent Contractor Rules - How do you know if somebody you engage is an independent contractor...
- Federal Payroll Taxes - When you hire a contractor, you must simply: File employment information returns with the appropriate agencies to report amounts paid to independent contractors...
- Interview with Business Coach Diane Helbig - After deciding to start my own business, I became an independent contractor for that company so I would still be pulling...
- From Real Estate Agent to Business Owner - What are some of the biggest differences you've noticed? Because I worked strictly commission as a Realtor, I didn't find a great difference between being an independent contractor and a CEO of my own company...
- Best Businesses For Entrepreneurs and Investors - Furthermore, independent contractors are often able to provide better response times if...
- Interview with Toma Clark Haines, Founder of The Antiques Diva - I have employed independent contractors in three countries -- Belgium, Holland and France -- to work...
- Independent Contractor Contract Agreements - Every contract you sign with an independent contractor needs to include some essential details, including these...
- Independent Contractor Laws - Be aware that states may use different criteria to define whether somebody is an employee or an independent contractor. Talk to your accountant, lawyer or payroll provider to...
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