Definition: The definition of an independent contractor is a specific term used by the IRS to define a self-employed person who does project-based work.
The company that contracts the work does not direct "the means and methods" by which the independent contractor completes the assignment, but it does dictate what the end product or result should be. While many people think of independent contractors as telecommuters they may work on-site too.
If paid $600 or more, independent contractors should receive a 1099-MISC tax form from their client to file with their income taxes. Consult a tax account for more information.
Always clarify with a potential employer whether you would work as telecommuting employee or an independent contractor.
Also Known As: Freelancer, consultant
