Independent contractor: definition, example, and why it matters
Different from employees — sets their own hours, supplies own tools, pays own taxes. Misclassifying employees as 1099 contractors can trigger back taxes, penalties, and overtime claims.
Short definition. A self-employed person hired to perform specific work under contract.
Category. Independent contractor is a legal term used by service businesses when billing customers.
How Glo Invoice handles it. Glo Invoice builds independent contractor into the invoice itself, so you don't track it on paper or in a spreadsheet.
Frequently asked questions
What does independent contractor mean?
Different from employees — sets their own hours, supplies own tools, pays own taxes. Misclassifying employees as 1099 contractors can trigger back taxes, penalties, and overtime claims.
Related terms
1099-NEC / 1099-MISC — US tax forms reporting payments to independent contractors and other non-employees.
W-9 form — A US tax form independent contractors complete so payers can issue them a 1099.
