People such as doctors, dentists, veterinarians, lawyers, accountants, contractors, subcontractors, public stenographers, or auctioneers who are in an independent trade, business, or profession in which they offer their services to the general public are generally independent contractors. However, whether these people are independent contractors or employees depends on the facts in each case. 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.
Independent contractors pay their own liability and malpractice insurance. Generally speaking, there are no company-sponsored benefits such as health insurance, paid vacations, or holidays like those enjoyed by an employed associate as a part of a contractual agreement.
Created by Scott Turner CPA