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Employment & Compensation

What is Contractor / Independent Contractor?

Self-employed worker hired for specific projects or periods, not a permanent employee.

Understanding Contractor / Independent Contractor

A contractor (or independent contractor) is a self-employed individual hired to complete specific work rather than being a permanent employee. Contractors typically invoice for their work, handle their own taxes, and don't receive traditional employee benefits.

Many remote workers operate as contractors, especially when working with companies in different countries. This arrangement offers flexibility but requires managing your own benefits, taxes, and retirement savings.

Key Takeaways

  • 1Self-employed, not an employee
  • 2Responsible for own taxes and benefits
  • 3Often project-based or fixed-term
  • 4More flexibility, less job security

Interview Questions

When a job mentions contractor / independent contractor, ask these to clarify:

  • 1Is this a true contractor role or should I expect employee-like expectations?
  • 2What's the typical contract length and renewal process?
  • 3Will I be responsible for my own equipment and software?

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Related Terms

Understanding these related concepts will give you the full picture:

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