Which workers contract to do specific work for others and are not employees?

Which workers contract to do specific work for others and are not employees?

• A. Ineligible
• B. Informants
• C. Independent Contractors
• D. Initiatives

Answer: (C)

Independent contractors are workers who contract to perform a specific piece of work for another party and are not employees. They typically operate as their own business, decide how to accomplish the work, use their own tools, set their own schedule, and bear the financial risks and rewards of their services. The hiring party focuses on the finished result rather than supervising daily tasks and generally does not withhold payroll taxes or provide employee benefits. This distinction matters in HR because misclassifying workers can lead to tax and legal consequences. In California, whether a worker is truly independent or an employee is assessed with tests that consider control, independence, and the nature of the relationship. The other terms listed don’t describe someone who contracts to do defined work and isn’t an employee.

Independent contractors are workers who contract to perform a specific piece of work for another party and are not employees. They typically operate as their own business, decide how to accomplish the work, use their own tools, set their own schedule, and bear the financial risks and rewards of their services. The hiring party focuses on the finished result rather than supervising daily tasks and generally does not withhold payroll taxes or provide employee benefits. This distinction matters in HR because misclassifying workers can lead to tax and legal consequences. In California, whether a worker is truly independent or an employee is assessed with tests that consider control, independence, and the nature of the relationship. The other terms listed don’t describe someone who contracts to do defined work and isn’t an employee.