Arizona Self-Employed Independent Contractor Questionnaire
Description
How to fill out Self-Employed Independent Contractor Questionnaire?
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FAQ
Becoming an independent contractor is one of the many ways to be classified as self-employed. By definition, an independent contractor provides work or services on a contractual basis, whereas, self-employment is simply the act of earning money without operating within an employee-employer relationship.
The new law allows Arizona employing units and independent contractors to establish their shared intent for the status of their relationship from its inception by permitting employing units to require their independent contractors to execute declarations affirming that their relationship with the business is as an
An independent contractor is defined as an individual who contracts to work for others without having the legal status of an employee. By engaging independent contractors, employers can avoid many of the costs associated with hiring employees.
The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. If you are an independent contractor, then you are self-employed.
To set yourself up as a self-employed taxpayer with the IRS, you simply start paying estimated taxes (on Form 1040-ES, Estimated Tax for Individuals) and file Schedule C, Profit or Loss From Business, and Schedule SE, Self-Employment Tax, with your Form 1040 tax return each April.
Arizona allows employers to request that individuals classified as independent contractors sign a Declaration of Independent Business Status (DIBS). The execution of a DIBS is not mandatory in order to establish the existence of an independent contractor relationship between a business and an independent contractor.
