Regarding workers, there are two types; the employee and the independent contractor. Anyone starting a business for the first time may not be aware of the types of workers. 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. Apart from variances, see to it that you know the benefits and demerits of an independent contractor and employee, click this website. The following paragraphs will highlight the key distinctions between the two types of workers.
To start with, one of the best ways you can differentiate the two types of workers is by looking at their tax situation. An employee has the benefit of their brunt of tax-related paperwork handled by the employer. The only problem is that the employees are given payroll taxes, click here to learn more.
Another difference between an employee and an independent contractor is that the employee is given a consistent salary. Any employee is a permanent asset of any business or company, and this makes them eligible for things like a healthcare plan. An employee also has the full benefit of things like workers’ compensation, severance package, and specialized training.
More often, an employee is subjected to a tight work schedule suggested by the employer. While the statement seems disadvantageous, it also has benefits depending on the employee, check this site. You may find the tight schedule limiting, or you can use it to your own advantage and be more productive.
When it comes to an independent contractor, the advantage is that you have more freedom and, therefore, a great choice if freedom is among your priorities. 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. As an independent contractor, you will only receive a paycheck once the given project is done. You will get the agreed amount so long as you deliver good work.
As contrary to an employee, an independent contractor will not get some benefits like healthcare, view here for more. 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.