When an individual works as an independent contractor, the working professional is basically self-employed and has to deliver project-based tasks to the hiring company. The individual contractor is expected to work for a specific timeline mentioned in the contract and is not added to the company payroll. It also means that the contractor has to pay self-employment taxes and lacks access to any kind of employee benefits from the hiring company. While working as an independent contractor provides flexibility and freedom, it lacks job security and many other perks otherwise provided by the employer.