What is an Independent Contractor (AKA a 1099 Contractor)?
What is an Independent Contractor (AKA a 1099 Contractor), and How Does It Compare to Being an Employee? The term independent contractor refers to one who provides their services and work to a business on a contractual basis. These contractors are not actual employees of the business they serve, although they do receive their income from their respective business. Such workers are also known as 1099 contractors, the number “1099” making reference to the IRS form filled out where an independent contractor states their income from a particular business each year (for tax purposes). Being self-employed as 1099 contractor can offer oneself great flexibility, although there are some specific drawbacks to being self-employed. Advantages and disadvantages of being self-employed Both employees and independents alike are required to pay into Social Security. While an employer may withhold a percentage of taxes for their employees, independent contractors have to take responsibility for the enti
Related Questions
- If I retire early using the 2008 ERF, can I return to work as a contractor, independent contractor or personal service contractor and continue to receive my benefit?
- Has anyone ever hired GSA Preview (aka GSA 1000) to become a pre-qualified contractor for government jobs?
- What is the difference between Contractor Registration and the Independent Contractor exemption?
