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. If you are thinking of venturing into a business, you should know that there are distinctions between employees and independent contractors. 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. With an employee, the benefit comes in place by the fact that the employer handles the brunt of tax-related documents. The only problem is that the employees are given payroll taxes, learn more.
As compared to an independent contractor, an employee is paid a consistent wage. Any employee is a permanent asset of any business or company, and this makes them eligible for things like a healthcare plan. Among the packages that they enjoy include; specialized training, severance package, and workers’ compensation.
When it comes to employees, there is always has a strict work schedule dictated by the employer. While the statement seems disadvantageous, it also has benefits depending on the employee, check this site. It is undefinable that a set schedule can be constricting, nevertheless if you thrive on accountability, you can be more productive, find more info.
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. The other variance between an independent contractor and an employee is that an independent contractor gets paid only when the task is completed, click here. 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. A company may benefit from having an independent contractor, but in this case, as an independent contractor, you will be missing out. 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.