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Glossary · Payroll & compliance

Independent contractor

A self-employed worker who sells services to clients and handles their own taxes, unlike a W-2 employee.

Also called:1099 workerSelf-employed workerFreelancer

Definition

An independent contractor is a worker who runs their own business and sells services to clients, rather than working as an employee. Contractors set their own methods and hours, use their own tools, can work for several clients at once and handle their own taxes and insurance. They receive a 1099 instead of a W-2. The label on a contract or invoice does not decide the status. The IRS, the U.S. Department of Labor and state agencies look at who controls the work and whether the worker is in business for themselves. Crew Staffing Pros employs its crews on W-2, so the workers we send are our employees, not contractors.

This definition is general information, not legal, tax or financial advice. Rules vary by state and change over time.

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