Definition of Contractor | Person or Company Working for Third Party

Payroll Definitions

Browse terms alphabetically

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Contractor Definition

Term Definition
A person or company who performs works independently or for a third party, usually under contract. A bona fide contractor is not considered an employee of the business and is completely independent from their client. Contractors should be given the annual Form 1099 showing the amounts paid for their work for the year. If the contractor goes through contract staffing services, they will likely have a third party employer of record for which they are a W-2 employee.

Related Articles
Independent Contractor vs. Employee
W2 vs. 1099

Get Started
Try it free

Sign up today for a free, no-obligation 30-day trial.

Try It Free for 30 Days
Get Started
Take a demo

Kick the tires with a free self-guided demo.

Take a Self-Guided Demo