An independent contractor is an individual or business entity hired to perform specific tasks or services for another organization, but who operates independently, rather than as an employee. Independent contractors are typically self-employed and work on a contract basis, meaning they are not subject to the same benefits or protections as employees (such as payroll taxes, health benefits, or workers’ compensation). They generally control how and when the work is done, and their relationship with the hiring organization is governed by a contract that outlines the scope of work, compensation, and terms of the agreement. Examples include consultants, freelancers, and gig workers.