What Is an Independent Contractor?

An independent contractor is a self-employed professional who is hired to perform certain services for a business on a contractual basis. Independent contractors are typically paid on an hourly basis with set hourly rates for the projects they work on. However, you can also hire independent contractors to work with a fixed-price contract.

How to track the work of independent contractors for accurate payroll?

If your independent contractors use hourly billing, you should use a high-quality time tracker to get accurate data on their completed work. This will allow you to perform your payroll calculations accurately, ensuring that you don’t end up over or underpaying your contractors.

Why is it important to classify independent contractors and employees accurately?

Distinguishing between independent contractors and employees accurately is important to avoid getting into legal trouble. In most jurisdictions around the world, employees qualify for a variety of benefits that independent contractors do not. As a result, the requirements for hiring contractors and employees differ.