Ultimately, an independent contractor is someone who has their own boss and sets their own rules to justify the way they work and their production. In general, when a person is paid by project or by task, it is very likely that he will be considered an independent contractor. If the person receives a salary, has to stick to a particular schedule and is told what to do in each facet of their workday, they are most likely considered an employee. You probably already have a basic idea of who is an independent contractor, but here we will discuss the independent contractor in a little more detail. The alternative of a stable employee, an independent contractor, operates independently and is not entitled to workers` benefits. In addition, the contractor is required to pay taxes such as income tax and other payroll taxes at the self-contracting rate. Unlike an employee, an independent contractor can choose how they intend to perform and complete the task or project and where they want to perform it….