In many cases, employees are also trained by their company. A significant difference is that employees are provided with what they need to work. However, if the driver owns it, which is where you get the expression “owner, operator,” they’re an independent contractor. If it’s the company, that driver is an employee. In the case of truck drivers, you can often look at who owns the vehicle. Generally, the Internal Revenue Service ( IRS) looks at the amounts of behavioral and financial control as well as the type of relationship a person has with a company. So, how can you tell if they are or aren’t? All of these people could just as easily be employees. ![]() ![]() Broadly speaking, they are defined as a person or business that provides goods or services to another entity under a verbal agreement or specified contract. For more information on how an independent contractor is different than work-for-hire, check out this blog to learn more.Įxamples of independent contractors include: What Is An Independent Contractor?įor a solid answer to that question, it helps to look at how an independent contractor is different from an employee. It's essential to know what tax deductions you qualify for to keep the correct records for when it is time to file your itemized deductions.īefore looking at the list of possible tax write-offs for independent contractors, it’s important to have a solid overall understanding of this specific status and its related tax liabilities. Top 10 Write-Offs for Independent ContractorsĪre you newly in business for yourself as an independent contractor? An independent contractor is a person or company that provides goods or services to another entity under a verbal agreement or specified contract.
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