contratista independiente
Definition
An independent contractor is a person or business you hire to do specific work, but who is not your employee. Unlike an employee, an independent contractor controls how and when they complete the work, uses their own tools, and typically works for multiple clients at once. You pay them a flat fee or project rate and do not withhold taxes, pay benefits, or cover unemployment insurance on their behalf.
Example
If you hire a freelance graphic designer to create your logo and she sets her own hours, works from her home studio, and also takes jobs from other businesses, she is most likely an independent contractor rather than your employee.
Watch Out
Misclassifying a worker as an independent contractor when the law considers them an employee can result in serious fines, back taxes, and penalties from the IRS and your state labor department.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.