What is defined about the Contractor's status in the Agreement?

The correct choice outlines that the Contractor is defined as an independent contractor responsible for their own taxes. This distinction is crucial in contracts to clarify the nature of the working relationship between the City and the Contractor. Being classified as an independent contractor means that the Contractor operates as a separate entity rather than being under the direct control of the City as an employee would be.

This status carries significant implications for taxes and liabilities; independent contractors are typically required to manage their own tax obligations, including income and self-employment taxes. They do not receive benefits typically provided to employees, such as health insurance or retirement plans. This classification allows for more flexibility in how the Contractor performs their work, as they are usually able to determine the means and methods of accomplishing their assignments, while still adhering to the specifications outlined in the Agreement.

Understanding this classification is essential for both the City and the Contractor to ensure that legal and tax regulations are correctly followed, and it shapes the overall dynamics of their professional relationship.