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Glossary Terms
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Independent contractors are individuals or businesses that offer services to other companies or clients on a contractual basis. The relationship between the hiring company and the independent contractor is based on a written contract that outlines the scope of work, payment terms and other details.
An independent contractor is an individual or an organization’s entity that provides services to another party under a contract. Independent contractors work solo and are not considered employees of the hiring company. They work as separate entities, often as freelancers.
Yes, independent contractors are self-employed individuals. They work for themselves and are not employees of the companies or customers they offer services to. Rather, they work as separate entities, solely as freelancers or sole proprietors.
No, the ability of independent contractors to unionize is a complex and debated issue, and it varies depending on the laws and regulations of different countries and regions. The primary reason why independent contractors typically face challenges in unionization is related to their legal classification and employment status. Labour laws and regulations generally differentiate between employees and independent contractors based on factors like control, independence, and the nature of the working relationship.
Some of the common entities that hire independent contractors include:
Independent contractors are responsible for paying taxes on their income, and the timing of their tax payments depends on the country's tax regulations. In general, independent contractors are required to make estimated tax payments throughout the year to cover their tax liability.
The advantages of independent contractors:
The disadvantages of independent contractors:
What are examples of independent contractors?
A few examples of independent contractors are as follows:
