Which of the following characteristics does NOT define an independent contractor versus an employee?

An independent contractor is typically defined by their level of autonomy and the nature of the relationship with the client or company. One key characteristic is that independent contractors are often compensated based on the completion of a project or the value of the services rendered rather than a fixed rate that is not tied to profitability.

When an independent contractor is compensated at a fixed rate regardless of profitability, it suggests a level of financial risk and reward that aligns more closely with employment relationships, where employees are paid wages or a salary regardless of how profitable their work is for the employer. This characteristic does not accurately capture the essence of the independent contractor role, which is defined more by flexibility, the ability to control one's own business operations, and taking some financial risks associated with delivering a service.

In contrast, the other characteristics mentioned include providing their own tools and materials, performing unique services that are not integral to the business, and having the ability to hire assistants. These traits emphasize the independence and entrepreneurial nature of contractors, setting them apart from employees who typically work with company resources, perform essential functions of the business, and do not usually have the flexibility to outsource their work.