Because of the employing party's lack of control over the individual, Independent contractor is not classified as an employee.
An independent contractor is an self-employed person or an organization contracted to perform work or provide services to another organization as a non-employee. As a result, independent contractors pay their own Social Security and Medicare taxes.
In addition, legal entities using the services of an independent contractor are not required to provide them with employee benefits, such as employer-sponsored health insurance and retirement accounts, that the legal entity may otherwise provide to its employees. Payers must correctly classify each payee as an independent contractor or employee. Another term for an independent contractor is "freelancer."
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