What is the term for an employer who contracts with an independent contractor?

The term for an employer who contracts with an independent contractor is "indirect employer." This is because the independent contractor operates as a separate entity, meaning that the primary relationship is not between the contractor and a direct employer-employee setup. Instead, the contractor provides services as a self-employed individual or a business entity, allowing them to maintain autonomy and responsibility for their own business operations.

In contrast, a "direct employer" typically refers to an organization that directly hires employees, with clear employment obligations in terms of salaries, benefits, and responsibilities. A "service provider" could refer to any business providing services, but it does not necessarily capture the specific relationship implied between an employer and an independent contractor. A "payroll manager" is a role focused on the administration of employee pay, which does not accurately describe the relationship with independent contractors. Therefore, "indirect employer" is the most appropriate term for this situation.