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CSIS Insurance Services, Inc. Blog

Being an Independent Contractor

1/1/2019

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​If a project owner cannot direct the workers on accomplishing the project, he seeks the help of an independent contractor to fill his role to get the job done. The two significant aspects when hiring an independent contractor are the capability to manage finance and direct the behavioral balance in the team.
​Why Would a Project Owner Need an Independent Contractor?
Owners usually absorb independent contractors because they know that the independent contractor already has the training accomplished and has the necessary skills to complete the project. The independent contractor and the project owner should always have a contract.
 
The owner’s relationship with the independent contractor is bound to a limited period. The bond stops when the project is complete. On the other hand, the owner or the employer has a continuous relationship with the workers on other projects.
 
Can the Owner Be the Independent Contractor as Well?
Even though the owner does not have the power to administer the workers, there is also a scenario wherein the owner can become an independent contractor. If the owner provides the authority to a worker to operate and directs the rest of the coworkers, the owner serves as an independent contractor.
 
The Responsibility of An Independent Contractor
The independent contractor is expected to provide comprehensive instructions and to direct all the workers on the team. He sets his own time. He can administer in the field or away from the working site depending on the agreement of the independent contractor and the owner. The independent contractor sets his own rules, and the workers follow the rules.
 
Unlike the employee who devotes his full work-time to the employer, the independent contractor can work for other employers or clients at the same time.
 
Independent Contractor’s Tax
Employers process the tax on employees or workers. On the contrary, the independent contractor is amenable to handle his. It is not the obligation of the employer to pay the tax of the independent contractor.
 
There are some instances that a coworker can become an independent contractor of his coworkers. When this happens, it becomes a burden to the owner if he does not know the agreement.
 
What Are the Benefits of An Independent Contractor?
Technically, workers compensation does not cover independent contractor. He is not entitled to receive health insurance, retirement fee, and unemployment benefits from the company. The law concerning the worker's wage and hours worked exempts the independent contractor. Having an independent contractor in the company is beneficial for the owner.
 
In some cases, should there be a need for an independent contractor to engage to perform the work, the workers' compensation is necessary.
 
Conclusion
In the construction industry, it is usually mandatory that an independent contractor obtains general liability coverage and contractor worker compensation. If you are an independent contractor, the policy will protect you from being held liable for any damages. At CSIS Insurance Services, Inc., we aim to make our client's life easier with policies that are tailored to their needs. You can get more information about our products and services by calling our agency at (888) 501-2747. Get your free quote today by CLICKING HERE.
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