Differences Between Employee and Independent Contractor
Regarding workers, there are two types; the employee and the independent contractor. As a young entrepreneur thinking of your own business, you may not be in a place to know this information. In the event that you are joining staff somewhere or starting your own business, you should note that the types of workers have many variances. Apart from variances, see to it that you know the benefits and demerits of an independent contractor and employee, click this website. Continue reading to discover how employees differ from independent contractors, click here! .
First and foremost, it should clear that an essential factor you can use to tell the difference between an employee and an independent contractor is through looking at the tax situation. An employee has the benefit of their brunt of tax-related paperwork handled by the employer. On the other side is that employees are given payroll taxes, and that is a demerit.
Another difference between an employee and an independent contractor is that the employee is given a consistent salary. The employees are also considered as the permanent assets of the company, and in most cases, they will receive benefits such as the healthcare plan. As an employee to get to gain more advantages such as the severance package, workers compensation, and special training.
When it comes to employees, there is always has a strict work schedule dictated by the employer. As an employee, you can find this disadvantageous or advantageous, check it out!. You may find the tight schedule limiting, or you can use it to your own advantage and be more productive.
An independent contractor is a better option, especially if you want to have more freedom. Despite the freedom, the challenge is that being an independent contractor requires more responsibility. The stress kicks in when you are fully responsible for your tax paperwork, view here.
Note that an independent contractor is considered self-employed by the internal revenue services. As an independent contractor, you will only receive a paycheck once the given project is done. So long as the work is done as per the required standards, you are always sure of getting paid.
As contrary to an employee, an independent contractor will not get some benefits like healthcare, view here for more. As an employer, this can be a burden taken off your shoulders, but when you want to join the staff, you may be disadvantaged read more about these here. To sum up, as an entrepreneur thinking of s starting a business or someone looking forward to joining a workforce, make sure you have a clear understanding and differences between the two types of workers.