Contractor definition
/What is a Contractor?
Contractors offer their services to the general public. A person is classified as a contractor when he or she has control over how the work will be done. The buyer only controls the specifications for the completed work.
Examples of Contractors
Here is a list of professions where individuals often work as contractors:
Construction and Trades
General Contractor
Electrician
Plumber
Carpenter
Roofer
HVAC Technician
Painter
Flooring Installer
Masonry Worker
Landscape Designer/Contractor
Technology
Software Developer
Web Developer
IT Consultant
Data Analyst
Cloud Engineer
Cybersecurity Specialist
UI/UX Designer
Systems Administrator
Network Engineer
AI Specialist
Creative and Media
Graphic Designer
Photographer
Videographer
Copywriter
Content Creator
Social Media Manager
Illustrator
Animator
Brand Strategist
Music Producer
Healthcare
Traveling Nurse
Physical Therapist
Occupational Therapist
Speech-Language Pathologist
Medical Transcriptionist
Home Health Aide
Locum Tenens Physician
Radiology Technician
Dental Hygienist
Mental Health Counselor
Professional Services
Accountant
Financial Consultant
Management Consultant
Legal Consultant
Tax Advisor
Business Analyst
Insurance Broker
Real Estate Agent
Paralegal
Project Manager
Education and Training
Private Tutor
Corporate Trainer
Instructional Designer
Language Coach
Curriculum Developer
Freelance Lecturer
Online Course Creator
Education Consultant
Test Prep Specialist
Special Education Advocate
Skilled Labor and Logistics
Truck Driver
Delivery Driver
Forklift Operator
Mechanic
Warehouse Manager
Heavy Equipment Operator
Crane Operator
Logistics Coordinator
Supply Chain Analyst
Auto Detailer
Event and Hospitality
Event Planner
Wedding Photographer
DJ
Catering Manager
Bartender
Floral Designer
Event Decorator
Freelance Chef
Hospitality Consultant
Stage Designer
Other Freelance and Contract Professions
Virtual Assistant
Translator
Interpreter
Business Coach
Life Coach
Marketing Consultant
Freelance Editor
Private Investigator
Environmental Consultant
Personal Trainer
Contracting work spans across many industries, offering flexibility and specialized opportunities.
Contractor Taxation
A contractor must pay self-employment tax. The buyers of a contractor's services have no obligation to pay payroll taxes related to the amounts paid to the contractor. Employers need to be careful about defining payees as employees or contractors, to ensure that payroll taxes are accounted for correctly.
How to Pay a Contractor
Contractors are not paid through a company’s payroll system, because the company is not the contractor’s employer. Instead, a contractor is set up in the company’s accounts payable system as a separate vendor, and paid in accordance with the payment terms agreed upon by the two parties.