Independent Contractor

Categorize

Options (7)

works flexible hours each day of the week

given a job to complete independently

work is limited to each contact signed

paid per job

assigned to work from 8am to 4pm weekdays

given an order of tasks that must be completed

uses company computer and internet access

Which statements describe an employee and which describe an independent contractor?

employee

independent contractor

Independent contractors do not have an employer making equal contribution, so they are responsible for paying both parts!

Self-employment tax is currently 15.3% of the independent contractors profits

Multiple Choice

Spencer has earned $21,739 as a rideshare driver. He calculated a total of $1,678 in expenses.

How much will Spencer owe for self-employment taxes?

Recall, the self-employment tax rate is 15.3%.

• $3,069.33

• $1,678

• $1,521.73

• $3,326.07

Open Ended

In your opinion, what is the biggest advantage to being an independent contractor and what is the biggest disadvantage? Explain your reasoning.

Let's Check Your Understanding

Categorize

Options (9)

set their own hours

choose their own work

can decide where to work

not elgible for employee benefits

must fund own retirement

finds and pays for their own training opportunities

greater contribution toward Social Security

a consistent paycheck

paid days off

What are some of the advantages and disadvantages to being an independent contractor?

advantages

disadvantages

Not Used

Multiple Select

Which of the following are a classification of an independent contractor?

Select all that apply

• chooses how tasks and jobs are completed

• pays own expenses such as work tools

• 
  responsible for setting aside money for all tax payments

• receives benefits like healthcare and retirement with each contract