Hiring Independent Contractors FAQ

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What is an independent contractor?

Independent contractors (ICs) are people who contract to perform services for others, but aren't legally employees. Because many employment laws and tax rules that cover employees don't apply to ICs, businesses can often save time, money, and headaches by hiring ICs instead of employees.

ICs may call themselves by a variety of names -- freelancers, consultants, the self-employed, entrepreneurs, or business owners.

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