From Diffen, a terrific article that discusses the differences between an employee and an independent contractor. It states:
“An employee works directly for a company or another person and answers to an employer/manager. An independent contractor may work for a company or another person (or multiple companies/people) and accept direction, but this worker ultimately has more control over the work he or she accepts and how, when, and where it is produced. Employees often stay with one employer for an extended period of time, while an independent contractor will usually only work for a company on a single project or for a short time, though there are exceptions. In the United States, freelancers, sole proprietors, and independent contractors are all considered self-employed and therefore subject to self-employment tax. Employers must withhold a portion of their employees’ salaries/wages for payroll taxes….”
Read the full story and see a terrific comparison chart at Employee vs Independent Contractor – Difference and Comparison.
