Independent Contractor

​What is an independent contractor?

Independent contractors are self-employed individuals who perform work on a contract basis for an employer. Independent contractors are not employees and therefore are not subject to employment tax withholding nor are they covered by most employment laws. Because of this nonemployee status, there are legal restrictions as to who can be classified as an independent contractor. Various federal government agencies and some states have their own tests to determine independent-contractor status.

For more information, see Employing Independent Contractors.