what is an independent contractor 
an independent contractor is a self employed person or entity contracted to perform work for or provide services to another entity as a non employee independent contractors must pay their own social security and medicare taxes in addition an entity that uses the services of an independent contractor is not required to provide them with employment benefits such as health insurance and employer sponsored retirement accounts that the entity may otherwise provide to its employees 12 the payer must correctly classify each payee as either an independent contractor or an employee another term for an independent contractor is freelancer understanding the category of an independent contractoran independent contractor works with clients on a temporary or contracted basis rather than as a direct employee this job status has become increasingly prevalent in the rise of what has been dubbed the gig economy doctors dentists veterinarians lawyers and many other professionals who provide independent services are classified as independent contractors by the internal revenue service irs however the category also includes contractors subcontractors writers software designers auctioneers actors musicians and many others who provide independent services to the general public 3according to the irs an individual qualifies as an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done 3