Independent Contractors

In common information, an independent contractor is someone who is in business for himself or herself. Independent contractors usually perform work that requires a specialized skill or trade that is not part of a company’s regular business. They also typically perform work for multiple customers or clients, set their own fees, work from home or their own place of business, provide their own tools and equipment, and determine how and when the work is to be done. A customer or client may provide specifications or deadlines for the work, but the independent contractor decides how much time to spend and how best to do the job. For example, a web designer who works from home, performs services for multiple clients, sets his or her own hours, and gets paid on a project basis would probably be classified as an independent contractor.

An employee, on the other hand, is someone whom a company has much more control over. An employee typically performs work that is a regular part of a company’s business. Employees also usually have regularly scheduled hours, work at the employer’s place of business, receive training and direction from the company, receive an hourly wage or salary, and are subject to discipline by the company. The company has control over how the employee performs the work, often providing training, guidelines, or other supervision over the work product.