What does “Independent contractor” mean in bookkeeping?
Independent contractor (also called 1099 worker): Someone paid for work who isn't an employee. No payroll taxes are withheld, but they may need a 1099.
Official details: Independent contractor or employee? (IRS) (opens in a new tab)
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Related terms in US tax and payroll
Written for US bookkeeping. Last reviewed November 5, 2026. See all 100 terms.