Key Distinctions Between an Employee and an Independent Contractor
There are two different types of workers, one being an employee and the other being an 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. An employee has the benefit of their brunt of tax-related paperwork handled by the employer. On the contrary, the disadvantage is that the employees are given payroll taxes.
An employee differs from an independent contractor in that an employee I was given a consistent wage. The employees are also considered as the permanent assets of the company, and in most cases, they will receive benefits such as the healthcare plan. As an employee to get to gain more advantages such as the severance package, workers compensation, and special training.
An employee basically has a schedule strictly ordered and monitored by the employer. As an employee, you can find this disadvantageous or advantageous, check it out!. 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. Freedom maybe the advantage, but the disadvantage is that you will have more responsibility as an independent contractor. The advantage is that an independent contractor carries the burden of tax papers on their shoulder, and this can be a pain in the back.
Note that an independent contractor is considered self-employed by the internal revenue services. Regarding independent contractors, you are not consistently paid, but you can be sure of the payment once the job is completed. So long as the work is done as per the required standards, you are always sure of getting paid.
The difference between an independent contractor and an employee is that the independent contractor is not entitled to benefits like the healthcare plan. 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 conclusion, before you start a business or join work, ensure you understand the differences so that you can make an informed decision.