Definition: The general rule that determines whether someone is an independent contractor is that an individual is an independent contractor if they decide how the work will be done. Independent contractors aren't told by the company what to do and how to do it. What is important is that the end result of the work and how it's completed is up to the contractor.
Independent contractors typically set their own hours and are paid on a freelance basis, either a flat rate or per job rate. Independent contractors are reponsible for paying their own taxes to the IRS and to their state tax department. Independent contractors are not entitled to benefits, even those mandated by law like unemployment and worker's compensation, because they are not employees of a company.
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Also Known As: freelance worker, contractor
