What is a Freelance Worker?

The terms are often used interchangeably. Freelancer typically implies working with multiple clients and shorter-term projects. Contractor may suggest longer engagements or working through a contracting company. Both are generally classified as independent contractors for legal/tax purposes. The key is the working relationship, not the label.

Freelancers are typically paid by invoice rather than payroll. You don't withhold taxes — they handle their own tax payments. In the US, you issue a 1099-NEC for payments over $600/year. Payment terms vary (net 15, net 30, milestone-based). Platforms like WorkGenius handle all payment processing and tax documentation.

Yes — many companies convert successful freelancers to employees after positive engagements. This provides a built-in trial period. Note that ongoing freelance relationships that look like employment may trigger reclassification regardless of intent. If you want someone working exclusively for you long-term, employment is usually the right structure.

Key elements include: scope of work (what will be delivered), timeline (deadlines and milestones), compensation (rate and payment terms), IP assignment (work product ownership), confidentiality (protection of proprietary information), termination (how either party can end the engagement), and independent contractor status (clarifying the relationship). WorkGenius provides compliant contracts for all engagements.