Ownership and transitions
Independent contractor
A worker who provides services to a business without being its employee, a status that depends on the real facts of the relationship, not on what the contract calls it.
An independent contractor is paid for services and is not an employee. The IRS says a business must look at the degree of control and independence in the relationship. A contract that says "contractor" does not settle the question.
The label matters because employers generally withhold and pay payroll taxes for employees, while contractors handle their own. Dental practices sometimes engage associate dentists or other clinicians under this label, so the question can come up in an employment agreement.
Several agencies and states use their own tests. A tax adviser or employment attorney can apply them to specific facts. This entry explains the term only and does not classify any worker.