What is an independent contractor?

Independent contractor: An independent contractor is a person or entity contracted to perform work for another entity as a non-employee. Independent contractors are often referred to as freelancers, consultants, or self-employed individuals. They typically operate under a specific contract that defines the work to be done, the compensation, and the terms of the agreement, but they retain control over how the work is executed. This means they are not subject to the same level of control or oversight as regular employees and often have multiple clients or customers.Independent contractors are responsible for their own business expenses, tax liabilities, and often provide their own tools and materials to complete the job. They do not typically receive the same benefits as employees, such as health insurance, retirement plans, or paid leave. This type of work arrangement offers flexibility and autonomy, but it also comes with less job security and the need for the contractors to manage their own business aspects, including finding work, billing clients, and covering their own insurance and benefits needs.