{"id":4727,"date":"2016-04-04T10:47:41","date_gmt":"2016-04-04T15:47:41","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/employment-law-and-human-resources\/hiring-independent-contractors-overview.html"},"modified":"2026-05-01T04:35:00","modified_gmt":"2026-05-01T09:35:00","slug":"hiring-independent-contractors-overview","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/hiring-independent-contractors-overview.html","title":{"rendered":"A Guide to Independent Contractors"},"content":{"rendered":"\n
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A Guide to Independent Contractors<\/h1>\n\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Aviana Cooper, Esq.<\/a>\n | Last reviewed\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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An independent contractor is self-employed and provides specific services to a business instead of being a permanent employee of the business. Independent contractors have control over their work, provide their own equipment, and handle their own tax obligations such as paying Social Security. There are many factors to distinguish an independent contractor from a permanent employee.<\/p>\n\n <\/div>\n\n\n\n

Small-<\/span>business owners<\/span> sometimes need an extra hand. They need someone who can do extra work or who has special skills their business doesn\u2019t have. However, their business can\u2019t support another full-time employee<\/span>. Or maybe the job won\u2019t take too long, but you can\u2019t handle it with the workers you have.<\/p>\n

Enter the\u00a0independent contractor<\/span><\/a>. An independent contractor<\/span> isn\u2019t an\u00a0employee<\/a>. They are self-employed<\/span> specialists who carry out compensated work for a business. Independent contractors<\/span> work under a separate\u00a0contract<\/a>\u00a0that defines the business relationship<\/span>.<\/p>\n

Hiring an independent contractor<\/span> can save small businesses time and money. Ensure your relationship is clearly defined. State and federal laws\u00a0separate employees from contractors<\/a>. Business owners<\/span> must know the difference. Read on to learn how and why these distinctions exist.<\/p>\n

You can also find other helpful information and resources about small businesses in FindLaw\u2019s\u00a0The Hiring Process<\/a>\u00a0section.<\/p>\n

Independent Contractors<\/span>: The IRS<\/span><\/h2>\n

The Internal Revenue Service<\/span> (IRS<\/span>) defines independent contractors<\/span>. Unlike employees, you do not take out payroll taxes<\/span> from your contractor\u2019s wages. Contractors are self-employed<\/span> and pay their income taxes<\/span> and Social Security<\/span> deductions.<\/p>\n

The IRS<\/span> does not have specific guidelines to determine if a worker is a contractor or an employee. Instead, it\u00a0lists factors<\/a>\u00a0employers must consider when employing an individual\u2019s services.<\/p>\n

Behavioral Factors<\/h3>\n

Do you have control over what the worker does? Behavioral factors and degree of control<\/span> include things like:<\/p>\n