An independent contractor is an individual or entity that provides services to another party under a contractual agreement. They are not considered employees and work independently, managing their own business operations. Independent contractors have more control over their work, including when and how they perform their tasks. They are responsible for their own taxes, insurance, and expenses. Unlike employees, independent contractors are not entitled to benefits such as paid time off, healthcare coverage, or retirement plans.
A graphic designer is hired as an independent contractor by a marketing agency to create a logo for a client. The graphic designer. Sets their own schedule and works remotely. Uses their own equipment and tools to complete the project. Can work for multiple clients simultaneously.