Wednesday, February 22, 2012
8:38 AM Long Nguyen No comments
When you provide services as a contract laborer or independent contractor, the Internal Revenue Service treats you as being self-employed. However, you have the same income tax obligations as an employee who earns a salary. The only difference is the way you report this income and how much money you can make before you must file a tax return. Unlike employees, contract laborers are responsible for paying self-employment tax directly to the IRS.