What Makes an Employee Vary from an Independent Contractor
Regarding workers, there are two types; the employee and the independent contractor. When you want to start a business, you may not be in the know. In the event that you are joining staff somewhere or starting your own business, you should note that the types of workers have many variances. Besides differences, examine the advantages and disadvantages of each type. The following paragraphs will highlight the key distinctions between the two types of workers.
First and foremost, it should clear that an essential factor you can use to tell the difference between an employee and an independent contractor is through looking at the tax situation. 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 fact still remains that the employees will be recognized and the permanent assets of the employee and therefore have specific benefits like 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. This can be a good or a bad thing depending on an individual, discover more. The set schedule may be limiting you in many ways; however, know that through that, you can be more productive.
An independent contractor is a better option, especially if you want to have more freedom. Freedom maybe the advantage, but the disadvantage is that you will have more responsibility as an independent contractor. The stress kicks in when you are fully responsible for your tax paperwork, view here.
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. You will get the agreed amount so long as you deliver good work.
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. To sum up, as an entrepreneur thinking of s starting a business or someone looking forward to joining a workforce, make sure you have a clear understanding and differences between the two types of workers.