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How do independent contractors get paid?

Independent contractors get paid in any number of ways: checks, cash, direct deposits or digital payments (like Venmo, PayPal, etc.). Some companies pay contractors by the hour and others pay them by the project. The IRS doesn’t classify this money as a salary or wages because only W-2 employees earn a salary or wages.

What is independent contractor income?

It’s simply called nonemployee compensation (or self-employment income, in more plain terms). Independent contractor income is usually reported on a 1099-NEC (the NEC part stands for nonemployee compensation) or a 1099-K. These little tax forms list how much money you earned as a contractor so you can report it on your taxes.

How much does a general contractor make?

The average General Contractor salary is $118,571 in the US. Salaries for the General Contractor will be paid differently by location, company, and other factors.

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