Question

Thoroughly the differences between employees and independent contractors

Answer 1

A person would be employee if the nature of work involved is more kind of integral to business but if it is non integral and temprorary than it will get independent contractor status.

If a person is on payroll of organisation than that is person is clearly an employee. Level of control is also checked while determing the status of person.

Worker's employment status also determines an employer's tax liability. In case of an employee, employers must pay state and federal unemployment tax, social security tax and workers compensation/disability premiums to a State Insurance Fund.While in case of an independent contractor, the hiring party is not required to make any of the above payments.

Employees are also eligible in case of sickness or accidents for the monetary compensation and othre benefits . While in case of independent conrator there are no other additional benefits other than those are in contract.

Independent contractors have more independence and higher control over time than employees.