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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. The earnings of a person who is working as an independent contractor are subject to Self-Employment Tax. The growth of jobs during the financial recovery has been, at the best, anemic. Many businesses are choosing to hire independent contractors to fill gaps in their jobs. Before you sign on as an independent contractor, it is important to understand the differentiation. Thus, Making the distinction; employee versus independent contractor IRS was made.

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