What are independent contractors?
Independent contractors are self-employed individuals who provide services for an employee. They are non-employees; thus, they are not subjected to employment tax withholding. They are also not covered by most employment laws. There are laws that classify whether an individual is an independent contractor or not.
What are the advantages of having independent contractors?
- Require minimal supervision of work
- Completes work within a defined period of time
- Fewer tax responsibilities
- Negotiate the expense upfront
- Responsible for their own permits and professional licenses
- Only hired when employers need them
What are the disadvantages of having independent contractors?
- Employers can direct results of work but not the actual work done
- They can work for others
- Employers don’t automatically own the copyright of their works
