independent contractor classification

Independent contractor classification refers to categorizing workers who provide services on a contract basis rather than as employees. Independent contractors typically control how they perform their work, set their own hours, and manage their business expenses, unlike employees who are under the direction of an employer. This classification affects tax obligations, benefits, and legal protections. Misclassifying workers can lead to legal issues, so it’s crucial for businesses to understand the distinction and comply with relevant laws to ensure proper treatment of workers.