Employer contracts with an independent contractor to install a pipeline and service as specified and agreed upon in the contract.
Arizona Pipeline Service Contract - Self-Employed
State:
Multi-State
Control #:
US-INDC-101
Format:
Word;
Rich Text
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FAQ
If you are a business owner or contractor who provides services to other businesses, then you are generally considered self-employed. For more information on your tax obligations if you are self-employed (an independent contractor), see our Self-Employed Individuals Tax Center.
The employer has the responsibility and power to control over his employees whereas for the independent contractor there is no power of control but the party requiring the services can determine the date for the work to be done. For the employee is entitled to the payment of wages and salaries.
Freelancers can be self-employed in the sense that they are setting their own rates and hours, but freelancing is, by definition, taking on work from someone else. You sign contracts and accept the terms that various companies offer you.
Simply put, being an independent contractor is one way to be self-employed. Being self-employed means that you earn money but don't work as an employee for someone else.
Subcontractor vs Independent contractor is a difference in an employment relationship with a laborer. Independent contractors are employed and paid directly by the employer while subcontractors are employed by an independent contractor and are paid by them.
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.
Independent contractors and subcontractors are both considered self-employed by the IRS. Both are responsible for making quarterly tax payments including self-employment tax.
The law does not require you to complete a contract with your self-employed or freelance workers - a verbal contract can exist even when there is nothing in writing.
Simply put, being an independent contractor is one way to be self-employed. Being self-employed means that you earn money but don't work as an employee for someone else.
Contractors can also be self-employed, but they perform tasks on a contractual basis, rather than selling any products or rolling, bookable services. For example, a plumber would work for a client according to an agreed, one-off contract.
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