Independent contractors, known in some industries as freelancers, may do work for a business, but they aren’t technically considered employees by IRS standards. They receive different income tax forms from the business (a 1099-MISC instead of a W-2), and they’re not eligible for benefits that employees can get, such as state and federal unemployment and disability insurance. Independent contractors must pay their own payroll taxes when tax season comes around; the business is not legally obligated to withhold, deposit and pay their payroll taxes. Therefore, independent contractors generally receive their total gross pay with no withholdings or deductions.