Who is an Independent Contractor (IC)?
An independent contractor is a person or entity that renders a specific service or performs a specific assignment, for specified compensation and for specified results. To qualify as an IC, the person or entity must be set up and operate as an independent business and make their services available to the general public. They must also control or supervise the manner or means by which the work is performed. Therefore individuals who are clearly employees of other companies that withhold their payroll taxes, i.e., issue a W-2 at year-end, such as state licensed temporary agencies, third party payroll service providers, consulting and contracting firms will be accepted as ICs. Someone may be an IC for one company &/or project, but not necessarily for another. • The IRS considers many factors to determine IC versus employee status, such as: the nature and degree of control over the performance of the work (who has control over when, where and how the work is performed), the degree to which
