Typically defined as an entity or individual who performs specific work for another but does not fall under the direct supervision or management and is not an employee of the person or organization who contracted for their services.
That's the very short definition of this term! Truth is that this term has caused trouble for many employers when it comes to their workers compensation program. You must remember that a term like this means different things to different people. An uninsured independent contractor may be treated as your employee and included under your workers compensation policy. Which in turn means that you would pay additional premium and have injuries sustained by them paid under your workers comp program! Be sure to check with your state authority as to how to handle independent contractors in regards your workers compensation insurance.
BE careful who you, as an employer, may call an independent contractor. The state, where you conduct business, may have special definitions and who they call an independent contractor may be very, very different than what you think! Many States have very specific definitions of just who qualifies as an independent contractor and how they are treated under their workers compensation act. You must also remember, this term is not just a workers compensation term but a term that spans from workers compensation topics to those of payroll taxes and when you're messing with a government authority and their taxes, look out!
So here's the scoop. You must know who your State considers to be an independent contractor. In order to do so you must check with your State authority to be sure. Some States have not only specific definitions but have established government departments to regulate independent contractors operating within their state. You will find that each State handles independent contractors differently. So be aware! Just because you call someone an independent contractor doesn't mean they are!
Contact our office if you have any questions about independent contractors or if we can be of any assistance to you with your workers compensation problems.