Independent Contractor

What is an Independent Contractor?

An independent contractor is a self-employed person who provides goods or services under a contract, but is not an employee of the business.

Think of it like this…

They work with you, not for you — they run their own business and manage their own tax and benefits.

Why does it matter?

  • Impacts how you deduct tax (SARS may require PAYE in certain cases)
  • Changes your obligations under labour law (no UIF, leave, or benefits unless agreed)
  • Affects liability, IP ownership, and contract terms

Best practice

Use a written agreement that sets deliverables, payment terms, ownership of work, and confirms independent status.

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