Employees vs. Contractors - What's The Difference?

Whether a person is an independent contractor or an employee generally depends on the amount of control exercised by the employer over the work being done. Dictating how a job is to be done or limiting the actions of the worker may establish an employer-employee relationship.

An independent contractor:

• Operates under a business name
• Has her own employees
• Maintains a separate business checking account
• Advertises her business's services
• Invoices for work done
• Has more than one client
• Has own tools and sets own hours
• Keeps business records

An employee:

• Performs duties dictated or controlled by others
• Is given training for work to be done
• Usually works for only one employer