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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

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.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
References in periodicals archive ?
What claims personnel also have to know about additional insured coverage and contractual liability is whether the tort liability assumed is permitted by law.
Thus, tort liability appears as a penalty under a general rule regulated by law, while civil contractual liability represents an application of the civil liability under a qualified hypothesis, namely that of prejudice resulting from the failure of a pre-existing contractual obligation (Anghel, Deak & Popa, 1970: 31).
Given these high stakes, this Note argues that Congress should create a federal statutory regime to limit the space flight industry's exposure to tort liability and, in particular, to prevent a court from deeming space flight entities common carriers.
The nature of tort liability of the civil liability of a physician was accepted, accordingly, only in cases where the damage was caused by an emergency intervention or was brought to a third party.
Negligent entrustment and storage | There is nothing novel about tort liability for a gun owner who provides a weapon to someone he should know is likely to misuse it, or who negligently allows such a person to obtain a weapon he owns.
have generally rejected tort liability for speech on a theory of
controversy over the underlying rationale for tort liability, one that
Not only would potential tort liability against such contractors affect military costs and efficiencies and contractors' availability, it would also present the possibility that military commanders could be hauled into civilian courts for the purpose of evaluating and differentiating between military and contractor decisions.
The reason, however, lies outside the existing debate because ex post tort liability is an ineffective deterrent for decisions that have impacts with long periods of latency.
(23) "[T]he threat of tort liability has the capacity to deter broadly...." (24) To argue that the prospect of civil liability has little or no effect on future behavior collides with a common understanding of how we react to the potential of punishment.
Tort liability - looked upon as the common form of the civil liability - can be defined as one's legal obligation stemming from either a civil wrong, other than contractual ones, or injury for which a court remedy is justified.