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A contract worker, also known as an independent contractor or 1099 employee (based on the 1099 tax form they receive), is an individual who enters into a contractual agreement with a business in order to provide a service in exchange for a fee.
What is a Contract Job? On a contract job, an employee works for a staffing firm on a W-2 basis under the direction of the client company for a predetermined amount of time to work on specific projects. The staffing agency pays the contract worker and takes out their taxes.
Contract-to-hire means the employee is placed in a short-term position for a set period of time, with the possibility of being hired full-time when the contract ends. The short contractual roles allow both employer and employee the opportunity of a trial period before committing to full-time employment.
Contractual jobs pay well This highly developed skill-set is appealing to organizations. Although permanent employees get company benefits such as paid leave, insurance, etc. contractors are paid enough to cover these expenses on their own, as they are paid double of what permanent employees earn.
Contractors aren't officially part of a company but are instead hired to complete specific tasks for a business as needed. A company could hire a contractor for a one-time job or give them consistent work over a certain period of time. They are compensated based on a negotiated rate for a project or per hour of work.