independent contractor
Financial Dictionary — Business & Legal Environment
Definition
An independent contractor is someone who performs a task for a company, but is not an employee. The IRS has standards to help distinguish between an independent contractor and an employee.
Use cases, Example & Why it matters
Use cases
- Used in planning, organizing, and controlling business operations.
- Used when setting KPIs, policies, procedures, and improving processes.
- Used when setting KPIs, policies, procedures, and improving processes.
Example
- Example: Management applies **independent contractor** when designing policies and monitoring performance against targets.
Why it matters
- Why it matters: Improves execution, accountability, and decision speed while reducing operational waste.