An independent contractor is a worker engaged by a company on a contract basis rather than as an employee, receiving 1099 income rather than W-2. Contractors control their own work hours, methods, and tools to a significant degree, typically work on specific projects with defined deliverables, and are not eligible for company-provided benefits (health insurance, 401k, paid time off, equity grants in standard employee plans). Proper classification is determined by specific IRS and state-law tests (the IRS uses a "right to control" test with multiple factors; California uses the strict ABC test under AB-5), and misclassification creates significant tax, legal, and financial exposure for companies. It is one of the most-...