Which term describes a person who works independently and handles their own taxes?

Which term describes a person who works independently and handles their own taxes?

• A. Independant Contractor
• B. Independent Contractor
• C. W-9 Form
• D. Budget

Answer: (A)

The term describes someone who works on their own and handles their own taxes: independent contractor. An independent contractor operates as a self-employed worker under contract rather than as a company employee, so they’re responsible for their own tax payments and filings. They typically file taxes as self-employed, which means paying self-employment tax for Social Security and Medicare and making estimated quarterly tax payments. Clients often issue a 1099-NEC if payments exceed a threshold, and to prepare that form they collect the contractor’s tax information on a W-9 form. The W-9 is a document, not the person, and a budget is simply a financial plan, not a term for a worker. Also, note the standard spelling is two words: independent contractor. The option given uses an incorrect spelling.

The term describes someone who works on their own and handles their own taxes: independent contractor. An independent contractor operates as a self-employed worker under contract rather than as a company employee, so they’re responsible for their own tax payments and filings. They typically file taxes as self-employed, which means paying self-employment tax for Social Security and Medicare and making estimated quarterly tax payments. Clients often issue a 1099-NEC if payments exceed a threshold, and to prepare that form they collect the contractor’s tax information on a W-9 form. The W-9 is a document, not the person, and a budget is simply a financial plan, not a term for a worker. Also, note the standard spelling is two words: independent contractor. The option given uses an incorrect spelling.