Legal
Independent contractor
A self-employed person hired to perform specific work under contract.
Definition
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.
Workers' compensation insurance
Insurance covering employee medical bills and lost wages from work-related injuries.