Contractor Definition

Term Definition
A person or company who performs works independently or for a third party, usually under contract. A bona fide contractor is not considered an employee of the business and is completely independent from their client. Contractors should be given the annual Form 1099 showing the amounts paid for their work for the year. If the contractor goes throughcontract staffing services, they will likely have a third partyemployer of recordfor which they are a W-2 employee.

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