independent contractor


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independent contractor

One who is hired to reach a certain goal or perform a certain task,but who has the ability and the right to determine the methods and times for reaching that goal or task,so long as it is not illegal and is within the limits of the contract.This is an important concept because

1. Employers must take withholding taxes and pay matching taxes for employees but not independent contractors. The IRS has significantly tightened the definition of indepen- dent contractor so that most work relationships do not qualify. Under certain circum- stances, real estate agents have been held to be employees for tax purposes.

2. If an independent contractor is negligent or commits an intentional tort, then the person who hired the contractor is not generally liable for the resulting damage. If an employee did the same thing, the employer would be liable so long as the employee was acting within the line and scope of his or her employment, which is usually a fairly easy hurdle for plaintiffs' lawyers to overcome.

3. An exception exists for the general rule of nonliability for the actions of an independent contractor, and that is in the area of real estate brokerage. Most real estate agents are independent contractors working for the broker. Real estate licensing laws, however, usu- ally hold the broker responsible for the actions of agents.

Independent Contractor

A taxpayer who contracts to do work according to his own methods and who is not subject to control except as to the results of such work. An employee, by contrast, is subject to the control of the employer as to the methods to be used to obtain the desired results.
References in periodicals archive ?
These legislative changes were made in an effort to make it easier for an individual to qualify as an independent contractor under state employment laws.
An independent contractor regularly offers his or her service to the general public.
If an independent contractor relationship is disallowed and an appraiser is subsequently reclassified by the IRS as an employee, the employer is liable for income tax withholding, employee and employer FICA, Medicare health insurance, federal and state unemployment taxes, and penalties for failure to file certain forms, failure to deposit taxes, and failure to pay taxes.
On-sight references to the worker should emphasize independent contractor status.
A: An independent contractor agreement is one of many factors to consider, but the contract alone is not sufficient to determine the worker's status.
Thus, MSHA's decision to issue an imminent danger order or penalty citation against a mine operator for independent contractor violations is unreviewable, even when MSHA departs from its own enforcement policies.
By having your independent contractors contact us via our 800-222-4664 number, we can take the "guesswork" out of wondering if the contractor has adequate insurance.
If the person is an independent contractor then they cannot work only for that one employer, The Australian Taxation Office will often view a person who works for one employer more than 80% of the time, as being an employee regardless of what they call themselves.
What does matter to the courts and regulatory agencies who decide if someone is an independent contractor is whether the worker is free from the right of another to control how services are performed and, usually, whether the worker maintains an independently operated business.
A genuine independent contractor also does not have protection under federal or State anti-discrimination employment laws or wage and hour laws (i.
To help determine whether a worker is an employee or an independent contractor, the IRS has relied on a 20-factor control test based on common law principles (Rev.

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