Final answer:
An independent contractor is a self-employed individual who provides services to a client or company. They have more control over their work and are responsible for their own taxes and benefits. Employers may choose to use independent contractors for specialized projects to avoid the costs and legal obligations of hiring employees.
Step-by-step explanation:
What is an independent contractor?
An independent contractor is a person who is self-employed and provides services to a client or company. Unlike employees, independent contractors have more control over how they perform their work and are responsible for paying their own taxes and benefits.
What are the differences between employees and independent contractors?
The main differences between employees and independent contractors are the level of control, tax responsibilities, and benefits. Employees work under the control and supervision of an employer, while independent contractors have more autonomy. Additionally, employees have taxes withheld from their paychecks and may receive benefits, while independent contractors are responsible for their own taxes and benefits.
When would employers want to use independent contractors instead of employees?
Employers may choose to use independent contractors instead of employees when they have a specific project or task that requires specialized skills or expertise. By hiring independent contractors, employers can avoid the costs and legal obligations associated with hiring employees, such as providing benefits and paying payroll taxes.