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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.
Persons who follow a trade, business or professions such as lawyers, accountants or construction contractors who offer their services to the general public are usually considered independent contractors.
Self-employed people earn a living by working for themselves, not as employees of someone else or as owners (shareholders) of a corporation.
Because you are an independent contractor, PRN ON Demand will not withhold or make payments for social security, make unemployment insurance or disability insurance contributions, or obtain workers' compensation insurance on your behalf.
Step 3: Last Employer Self-employed individuals may enter "self-employed" for the last employer's name and include his/her own address and contact information in lieu of the "last employer's address and contact information."
Under Colorado Law, an individual is presumed to be in covered employment unless and until it is shown that the individual is free from control and direction in the performance of services, both under contract and in fact, and that the individual is customarily engaged in an independent trade, occupation, profession or
Who Needs A Contractor License In Colorado? You Need to Determine Which Contractor License You Need In Colorado, general contractors must obtain licenses at the municipal level, while electricians and plumbers must obtain licenses at the state level.
Wage & Hour LawIndependent contractors are not considered employees under the Fair Labor Standards Act and therefore are not covered by its wage and hour provisions. Generally, an independent contractor's wages are set pursuant to his or her contract with the employer.
As a freelancer, you also have to manage invoicing and following up on payments. When you work as an independent contractor, you work on an hourly or project-based rate that may vary from client to client or job to job. If you work independently, you have control over setting and negotiating your rates.
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.