Independent Contractor

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Dictionary Says

Definition of 'Independent Contractor'

A self-employed taxpayer that controls his or her own employment circumstances, including when and how work is done. Independent contractors are not considered to be employees and must pay their own Social Security tax.

It is up to the employer to correctly classify each worker as either an independent contractor or an employee.

Investopedia Says

Investopedia explains 'Independent Contractor'

Independent contractors are considered to be sole proprietors of their own businesses and must report all income and expenses on Schedule C of Form 1040 (or Schedule E if they deal in rental property).

Their employers have no control over how and when they work, and do not pay any of their federal insurance contributions (FICA) or federal unemployment taxes (FUTA).
Search results for

'Independent Contractor'

  • Small Business Tax Obligations: Payroll Taxes

    http://www.investopedia.com/articles/taxes/08/business-payroll-tax.asp
    ... In some professions, having significant control over supplies used for work
    supports a worker's status as an independent contractor. ...

  • Freelancing 101: Alternatives To Unemployment - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1111/Freelancing-101-Alternatives-To-Unemployment.aspx
    ... Some companies ask freelancers to come to their offices. (For pros and cons of
    freelancing, read Be Your Own Boss By Freelancing.) Independent Contractor Vs. ...

  • Starting A Small Business: Hiring Employees | Investopedia

    http://www.investopedia.com/university/small-business/hiring-employees.asp
    ... commitment to an employee but you'd like to see how you do with help, consider hiring
    temporary help, virtual help or an independent contractor/freelancer. ...

  • Should You Incorporate Your Business?

    http://www.investopedia.com/articles/pf/08/incorporate-business.asp
    ... If an independent contractor or sole proprietor becomes an LLC, the individual's
    liability is limited, which often puts the owner's personal assets out of ...

  • Layoffs: Know The WARNing Signs

    http://www.investopedia.com/articles/pf/09/planning-your-layoff-warn.asp
    ... your job, go out fighting for the best benefits you can get The Layoff Payoff: A
    Severance Package.) Exempt Employees If you are an independent contractor or a ...

  • CFA Level 1 Study Guide - Ethics and Standards - Standard IV ...

    http://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/standard-loyalty.asp
    Sign In• Register• Free Annual Reports • Free Newsletters. Dictionary;
    Investing; Markets; Personal Finance; Active Trading; Forex; ...

  • Starting A Small Business: Introduction | Investopedia

    http://www.investopedia.com/university/small-business/default.asp
    Find out the steps needed to start your small business.

  • 5 Biggest Challenges Facing Your Small Business

    http://www.investopedia.com/articles/pf/12/small-business-challenges.asp
    ... Client Dependence If a single client makes up more than half of your income, you
    are more of an independent contractor than a business owner. ...

  • Starting A Small Business: Making The Leap | Investopedia

    http://www.investopedia.com/university/small-business/transition-from-work-to-self-employed.asp
    ... Hopefully, the excitement you feel for becoming independent will motivate you to
    use your nights and weekends to get your business up and running. ...

  • Do You Need A Home Warranty?

    http://www.investopedia.com/articles/mortgages-real-estate/11/home-warranty-worth-it.asp
    ... However, they also eliminate the freedom to choose your own independent contractor
    if you want the warranty to pay for the repair or replacement. ...

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