Differences Between Employee and Independent Contractor

Regarding workers, there are two types; the employee and the independent contractor. When you want to start a business, you may not be in the know. If you are thinking of venturing into a business, you should know that there are distinctions between employees and independent contractors. It is also your responsibility to analyze the cons and pros of the two types of works, click here for info. The following paragraphs will highlight the key distinctions between the two types of workers.

In the first place, take keen note that the major difference between the two types of workers is the tax situations they are in, read more here. With an employee, the benefit comes in place by the fact that the employer handles the brunt of tax-related documents. The only problem is that the employees are given payroll taxes, learn more.

An employee differs from an independent contractor in that an employee I was given a consistent wage. The fact still remains that the employees will be recognized and the permanent assets of the employee and therefore have specific benefits like 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. While the statement seems disadvantageous, it also has benefits depending on the employee, check this site. It is undefinable that a set schedule can be constricting, nevertheless if you thrive on accountability, you can be more productive, find more info.

As compared to an employee, an independent contractor best suits those that want freedom. Despite the freedom, the challenge is that being an independent contractor requires more responsibility. As an independent contractor, you have full responsibility for your tax documents, and this can be overwhelming.

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. In closing, for anyone starting a business or joining any company, make sure you spend time weighing the advantages and disadvantages of an employee and independent contractor so that you make a suitable choice.