What is an independent contractor? Can you think of a common type of independent contractor?

Expert Solution

An independent contractor is a person or an entity which is hired by an enterprise or a company other than its employees on a contractual basis for the performance of a specific type of task for the enterprise. The terms of the contract may be different from that of employment contract.

The payment to the independent contractor are made separately and the company does not has the right to withold the taxes or other payments of the independent contractor till the time the targets of the enterprise are met by the contractor. The contractors services may be repudiated in case he does not work as per the company's set goals or the work assigned to him.

Example - A company may hire the services of the travel agency so that it can bring the employees from far of places to the working place. In such a case the travel agency will be the independent contractor and will provide the travelling services to the company and both, the company and the travel agency will agree upon the terms of the contract signed between them.

Rahul Sunny answered 2 years ago

What are some attributes that may distinguish an employee from an independent contractor? Do you think...

What are some attributes that may distinguish an employee from an independent contractor? Do you think it is ethical to pay employees "under" the table and give them a 1099? What if any are the effects of the new stimulus package on 1099 employees How much will the stimulus package provide to each family, what are the regulations regarding receiving payment and will it be taxable?

April is an independent contractor paid a total of $3,000 for 2016. What actions should you...

April is an independent contractor paid a total of $3,000 for 2016. What actions should you take to report April’s income? Do you need to complete forms for both April and government agencies? Are you required to withhold income tax for April? What if April received $500 instead of $3,000? Would you still report her income?

What is a fiduciary relationship? What are the differences between an employee and an independent contractor?...

What is a fiduciary relationship? What are the differences between an employee and an independent contractor? What is an agency relationship? List and define the ways an agency can be formed. What are the agent’s duties to the principal? What are the principal’s duties to the agent? List and define the types of authority. What are the three categories of principals and how do those categories effect liability? When is an principal liable for the torts of the agent? What...

What are "common" fixed costs not allocated to segments? Can you think of any segments that...

What are "common" fixed costs not allocated to segments? Can you think of any segments that have been eliminated from companies that you are familiar with (products, etc.). I was shopping for a small truck recently and noticed that Mazda had eliminated economy trucks from their product line. Their small truck product line must have had a negative 'segment margin".

How can we differentiate between whether an individual would be considered an independent contractor or a...

How can we differentiate between whether an individual would be considered an independent contractor or a W-2 employee? What repercussions, if any, does an employer face if they incorrectly identify an employee as an independent contractor?

Think of a company that manufactures a product. What type of standards do you think they...

Think of a company that manufactures a product. What type of standards do you think they might have regarding their sustainability efforts? Do you think sustainability standards would be beneficial for the company? Why or why not?

Payroll Accounting What is the difference between an independent contractor and an employee? How does this...

Payroll Accounting What is the difference between an independent contractor and an employee? How does this status affect their taxes and reporting requirements on both employee and employer sides?

For this assignment, you will write a paper explaining employee vs. independent contractor classifications using the...

For this assignment, you will write a paper explaining employee vs. independent contractor classifications using the Madrid and Berne case scenario provided below. Scenario: Madrid and Berne is a top-rated accounting firm with offices in Phoenix and Tucson. Madrid and Berne wanted to provide bookkeeping as an additional service to its clients. It has hired Joan Newman Business Services, with offices in Phoenix, Flagstaff, Tucson, and Yuma, to perform contract bookkeeping services for Madrid and Berne clients who request and...

How Independent is the Fed? Do you think the Fed should be independent?

a. What do you think the business model of Facebook is? In what type of market...

a. What do you think the business model of Facebook is? In what type of market structure operates? Draw the relevant graph. b. How does advertising affect the cost per unit? How does advertising affect the mark-up? Justify your answers.

Question