Associate Professional in Human Resources Training Practice Exam 2025 - Free Practice Questions and Study Guide

Independent contractors are defined as individuals who enter into a contract to provide specific services or work but are not classified as employees of the company they work for. This distinction is important because independent contractors operate their own businesses, have more control over how they complete their tasks, and are responsible for their own taxes and benefits. They typically work under contract for a defined project or period, and they do not have the same rights and protections that standard employees do, such as entitlement to benefits, unemployment insurance, or workers' compensation.

The other definitions incorrectly describe the nature of independent contractors. Full-time employees are on payroll and receive benefits and protections. Individuals doing specific work as employees implies they are under the management and direction of the employer, which contradicts the greater autonomy independent contractors have. Part-time workers, while they may work fewer hours, still are considered employees if they are under contract with the company, and thus do not fit the definition of independent contractors who have a self-directed work style.