Independent Contractor vs. Employee
An Independent Contractor (IC) is an individual who contracts with a business entity to perform a service independent of the entityÂ's management. The contractor is not considered an employee and therefore, is responsible for his own taxes.
If you are in business now or planning to be, there is a good chance that you will have to deal with the issue of Independent Contractor (IC) vs. Employee either sooner or later. The business community and the IRS have been playing a cat and mouse game around this subject for many years. The reasons are clear. Businesses can save money by hiring an IC because they are not responsible for collecting and paying any taxes. In addition, they can hire this Â"expertÂ" to come in...
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