WHAT IS THE DIFFERENCE BETWEEN AN INDEPENDENT CONTRACTOR AND AN EMPLOYEE?

The main difference between an independent contractor and employee, is an employee is controlled by an employer and obtains certain benefits that an independent contractor doesn’t obtain. For example, the employee is going to be paid by the hour or salary, maybe provided health insurance, maybe provided vacation time or benefits and other items that other persons that work for the employer get. In exchange for that, the employee is then controlled by the employer. The employee is told when to start, when to finish and is paid a certain level of compensation and doesn’t have multiple employers typically. The employee will generally sell the labor of the employee only to one business, namely the employer.

Independent contractors, by contrast, do not have these benefits, but do not have the burdens of an employee. They’re free to have other customers. They can set their own hours. They would invest in their own equipment. They can negotiate compensation and they can, they’re free to do business with multiple businesses or customers without having any special obligations.