Independent Contractor

Independent Contractor means:
a contractor who is self-employed. The contracting party need not withhold Social Security taxes and federal income tax; the independent contractor is subject to the self-employment tax. Former Revenue Ruling (check if this Rev. Rul. interpretation is current) 87-41 provides a 20-factor common-law test to classify a worker as an employee or an independent contractor. See self-employed person; qualified real estate agent.

Individuals who follow an independent trade, business, or profession in which they offer their services to the public and are typically not employees.

Performs services for others. The recipients of the services do not control the means or methods the independent contractor uses to accomplish the work. The recipients do control the results of the work; they decide whether the work is acceptable. Independent contractors are self-employed.

See the entries Income Tax and State Income Tax in the American Encyclopedia of Law.

Description and Definition of Independent Contractor

One who controls the means and methods of performing his or her own work and files tax returns as a self-employed person. If you are an independent contractor the person or company you work for controls what you do, not how you do it.

Resources

See Also

Further Reading

• Independent Contractor in the West's Tax Law Dictionary
• Independent Contractor in “A Dictionary of Taxation”