There is no requirement to withhold taxes on independent contractors. The independent contractor is fully liable for all payroll obligations. If you are a direc

There is no requirement to withhold taxes on independent contractors. The independent contractor is fully liable for all payroll obligations. If you are a direct employee then the employer will pay half of your payroll tax (7.5%). If you are an independent contractor then you pay the full tax of 15%. However, independent contractors are not without risk because the independent contractor is suppose to operate fully independent without your supervision. If you violate certain guidelines then you have to classify the worker as an employee which entitles them to certain rights.