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Independent contractor
An independent contractor is a self-employed individual or business providing services under a contract, controlling how the work is performed. Contractors receive gross payment with no tax withheld, and US contractors are reported on Form 1099-NEC above the reporting threshold.
In plain terms: Someone who works for you but decides how the work gets done.
Why it matters
Classification is decided by the substance of the relationship, chiefly the degree of control you exercise, not by what the contract is called. Misclassification exposes the company to back employment taxes, penalties and interest.
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