6 Facts About Everyone Thinks Are True

Differences Between Employee and Independent Contractor

A worker can be categorized into two categories, the first category being an employee and the other independent contractor. As a young entrepreneur thinking of your own business, you may not be in a place to know this information. If you are thinking of venturing into a business, you should know that there are distinctions between employees and independent contractors. Besides differences, examine the advantages and disadvantages of each type. Continue reading to discover how employees differ from independent contractors, click here! .

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.

Another difference between an employee and an independent contractor is that the employee is given a consistent salary. Any employee is a permanent asset of any business or company, and this makes them eligible for things like a healthcare plan. Among the packages that they enjoy include; specialized training, severance package, and workers’ compensation.

More often, an employee is subjected to a tight work schedule suggested by the employer. This can be a good or a bad thing depending on an individual, discover more. It is undefinable that a set schedule can be constricting, nevertheless if you thrive on accountability, you can be more productive, find more info.

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.

Take keen consideration that as an independent contractor, you are self-employed according to the international revenue service. The other variance between an independent contractor and an employee is that an independent contractor gets paid only when the task is completed, click here. You will get the agreed amount so long as you deliver good work.

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.