It depends on the degree of control you exercise over the individual, if the individual is offering their services to the public, if the individual furnishes their own tools to perform services, if the individual performs services in their own facilities or yours, among other factors[1] weighted differently in each situation.
There is some specific legislation for software contractors that was passed in 1986 that make it difficult for them to be independent contractors who work solely for one company. The IRS is pretty active about enforcing it.
This is why most companies hire software contractors via companies who employ multiple contractors, and never directly.
