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 ?
This is a win for trucking company employers because the use of independent contractors is vital to the industry, and this decision forces any plaintiff or driver advocacy group to go beyond merely alleging drivers were misclassified as independent contractors.
The Dutch Competition Act does not apply to independent contractors who work side by side with employees
Kevin Stitt, the Oklahoma Employment Security Commission would apply a new "litmus test" in identifying independent contractors.
Openforce, a portfolio company of Riverside Partners, a Boston-based private equity firm, is a platform for onboarding, contractor and vendor settlement, compliance management and risk mitigation solutions for independent contractor workforces.
Troutman said once an employer has made sure to properly classify people who do work for them, it is then equally important to verify insurance coverage for those deemed independent contractors. This due diligence on the front endcan avoid unforeseen costs on tbe back end.
Going forward, insurance industry executives should be aware that courts will weigh certain factors in the ERISA test for employee versus independent contractor more heavily than others.
Fele, in which it ruled that a nurse who was involved in a fatal car crash while driving to a hospital was an independent contractor rather than an employee.
Although the court did not see this as the typical independent contractor relationship particularly because the entire consumer base was served exclusively by drivers operating as independent contractors the court concluded that UberBLACK's drivers were appropriately classified as contractors and were not entitled to minimum wage and overtime.
He wrote in his order that the presented evidence "supports a finding that the American Family agents defined in the class description should have been classified as employees and not independent contractors."
Independent contractors who perform work for your business operate under their own business names.
"To establish that a presumptive employee is actually an independent contractor, an employer must prove that
Several years later, Carney surveyed 22 home care providers and determined that nine used independent contractors. In 2010, she attended a mandatory conference hosted by the Pennsylvania Department of Health, which informed attendees that the "regulatory definition of a 'home care registry' was a business that 'supplies, arranges or refers independent contractors to provide home care services.'" Nelly argued that these two points served as evidence that a significant segment of the industry used independent contractors.

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