Definition:

A freelancer is someone who performs tasks, usually for multiple employers over the course of a year. A freelancer is somewhat like a free agent in professional sports - he or she essentially sell their services to the highest bidder - except that they usually work for more than one employer.
Freelancers may work part-time or full-time. Because they are not considered employers, freelancers are allowed to work for other employers and are usually permitted to perform tasks in their own way, so long as the work gets done to the client's specifications.
Longer term freelancers who work for the same employer for an extended period are sometimes referred to as "permalancers" - or "permanent freelancers". Permalancers may or may not be offered benefits through their employers.
Freelancing is one of the easiest, fastest, and lowest cost ways to start working for yourself. Multiple freelancing websites, like Guru.com and eLance.com provide an online marketplace where employers post work and freelancers bid on completing the work in an open market, which is often extremely competitive.
A somewhat common misconception is that freelancers are called that because they work for free - or next to it. That is not the case, and as freelancers gain more and more experience in the field in which they specialize, they can command higher rates for their work.
Freelancer employers who try to exert too much control over where, when or how the work is done can place themselves in jeopardy with the Internal Revenue Service, since such workers are usually considered employees, especially when they work for one employer over the long term. Unlike employees, employers are not required to offer freelancers any benefits, withhold payroll taxes or pay into workers compensation or unemployment plans.

Also Known As: permalancer, permanent freelancer, outsource help, independent contractor