← Remote Work Glossary

Independent Contractor

A self-employed worker hired for services without becoming a formal employee of the company.

An independent contractor provides work under a contract but is not an employee, so they usually handle their own taxes, benefits and equipment. In the US this maps to a "1099" worker, versus a "W-2" employee.

Contracting can pay more per hour but offers less security and no employer benefits. Cross-border remote hires are often structured this way — or through an Employer of Record to make someone a proper local employee.