Employee vs. Independent Contractor

Topics: Employment, Independent contractor, Employment classifications Pages: 4 (1179 words) Published: February 10, 2013
Employee vs. Independent Contractor

Employee vs. Independent Contractor
HRM 546
February 4, 2013

Employee vs. Independent Contractor
People generally know if they are an employee or an independent contractor, but with some jobs or businesses knowing for sure can be difficult. Understanding what the laws to know the difference between the two is important. According to the "U.s. Small Business Administration" (n.d.), " Knowing this distinction will help you determine what your first hiring move will be and affect how you withhold a variety of taxes and avoid costly legal consequences.” (Hire a Contractor or an Employee?)

Employee
Common names are used by people to describe what employees are called such as paper pusher, drone, number pusher or gopher. In the eyes of the law the definition of employee is important and needs to be taken seriously. The laws defining an employee have been put into place to help protect both the employer and the employee if a problem comes about between the employer/employee relationships. According to IRS-Employee. (2013), "Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done.” (para. 1).

Independent Contractor
According to "Hiring Independent Contractors" (2013), “Independent contractors (ICs) are workers who are considered to be in business for themselves. They may use a number of different terms to describe their employment situation, such as freelancers, consultants, self-employed workers or entrepreneurs.” (para. 1) Carrying the status of Independent Contractor is not for everyone. Some people like that fact they can work their own...
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