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What Is an Independent Contractor? An independent contractor is a self-employed person or entity contracted to perform work foror provide services toanother entity as a nonemployee. As a result, independent contractors must pay their own Social Security and Medicare taxes.
Like many other states, you do indeed need a contracting license to work as a contractor in Georgia.
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.
A 1099 employee is a US self-employed worker that reports their income to the IRS on a 1099 tax form. Freelancers, gig workers, and independent contractors are all considered 1099 employees.
To ensure you're protected from start to finish, always follow these protocols before you hire.Get Proof of Bonding, Licenses, and Insurance.Don't Base Your Decision Solely on Price.Ask for References.Avoid Paying Too Much Upfront.Secure a Written Contract.Be Wary of Pressure and Scare Tactics.More items...?
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.
Who Needs a Contractor's License in Georgia? General contractors performing work over $2,500 and all residential contractors need to obtain a license at the state level.
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.
In addition, Georgia requires you to subcontract with specialists for certain types of work. This includes electrical, plumbing, and HVAC projects. You can still act as the supervising contractor, but a licensed subcontractor must perform the work.
The three types of self-employed individuals include:Independent contractors. Independent contractors are individuals hired to perform specific jobs for clients, meaning that they are only paid for their jobs.Sole proprietors.Partnerships.