what does contract job type mean
How Contract Positions Work. Contract positions are employment arrangements that do not involve the same level of commitment as an employer-employee relationship. If you hire contract workers, you are not required to pay employment taxes on the hours they work as you would for a regular employee.axes. A contract worker is responsible for paying his own taxes. You do not withhold taxes from his paycheck, and you do not pay employer contributions for his share of Social Security and Medicare, or employment taxes such as unemployment insurance and industrial insurance.